Bitwise Asset Management, in collaboration with ETF Trends, has released its 2020 study covering financial advisors and their attitudes toward cryptocurrencies. The survey reveals that many advisors are having their very first conversation about crypto since the asset class hit their radar in 2017.
A cross-sample of 415 financial advisors, comprised of independent registered investment advisors (RIAs), broker-dealer representatives, financial planners and wirehouse representatives managing roughly half of all the wealth in the US, shows that 17% own Bitcoin in their personal portfolios and 76% received a crypto-related question from a client sometime in the past 12 months. These figures are slightly down from last year at 19% and 80%, respectively.
The mean advisor in the survey reported having between $50 million – $99.99 million in assets under management.
Key findings
- The number of advisors allocating to crypto in client portfolios is expected to more
than double in 2020, from 6% to 13% - 6% of financial advisors currently have a crypto allocation in client portfolios
- None of the advisors with positions today intend to decrease or eliminate their position in the next year
- 42% with positions plan to increase clients’ crypto allocations in the next 12 months
- 58% with positions plan to hold that position steady
- Most of the financial advisors who fielded questions about crypto received inquiries from just a small number of clients (fewer than 10% of clients)
- 72% of advisors think clients may be investing in crypto outside of their advisory relationship, up from 65% last year
The report reveals a significant interest in crypto despite 2019’s market volatility and lack of regulatory clarity.
Tom Lydon, founder and CEO of ETF Trends, affirms,
“Crypto continues to be top-of-mind for advisors searching out new and uncorrelated sources of return. The survey results clearly indicate growing interest in crypto from advisors and their clients alike.”
You can check out the full report from Bitwise here.
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