A survey published by crypto index fund provider Bitwise Asset Management found that the number of financial advisers allocating capital to crypto has grown by around 50% in a year.
The survey, conducted in partnership with the ETF Trends investment website, interviewed nearly 1,000 US-based financial advisers in December. The results show that 9.4% of client portfolios were exposed to crypto assets, up from 6.3% a year ago.
Among investment advisors who have not yet made a commitment to crypto, 15% said they would invest “probably” in virtual currency in 2021, and 2% said they would “definitely” invest in the D class. ‘active this year.
Financial planners are much more likely to invest their personal wealth in cryptocurrency, with 24% saying they have already done so.
The global economic fallout from the coronavirus pandemic appears to be the primary motivator pushing financial planners towards crypto assets, with 54% of respondents describing “uncorrelated returns” as the primary benefit of exposure to cryptocurrency.
A quarter of survey respondents described “inflation hedging” as the most attractive utility in crypto, up from 9% the year before. Client demand also appears to be significant, with 81% of advisers reporting that clients asked them about crypto assets in 2020, up from 76% in 2019.
Despite the growth in the number of financial advisers allocating crypto allocations, Bitwise’s CIO noted that “the survey shows it is still early days for crypto, with less than 10% of advisers allocating today” , adding:
“At the same time, adoption and interest are increasing: the survey suggests that the number of affected counselors could double or more in the coming year.”
ETF Trends CEO Tom Lydon said: “Financial advisers are increasingly seeking exposure to alternative assets, and interest in crypto is increasing.”
The number of crypto-opponents within the investment advisor community is also dropping, with the number of respondents predicting BTC to drop to zero dropping from 14% in 2019 to 8% last year, then halving to only 4% this year.
Conversely, the number of advisers predicting six-digit Bitcoin prices within five years has increased from 4% to 15% in a single year.