A Shift Towards Cryptocurrency in Financial Portfolios
A recent survey by asset management firm Bitwise reveals a growing interest in cryptocurrency among US financial advisors. Conducted from November 14 to December 20, 2024, the survey found that 56% of advisors are more likely to invest in crypto after the 2024 elections.
This shift indicates a trend towards integrating crypto into mainstream financial portfolios. In 2024, 22% of advisors included crypto in client portfolios, an increase from 11% in 2023. Client interest is also high, with 96% of advisors receiving inquiries about cryptocurrency in the past year.
Among those already investing in crypto, 99% plan to maintain or increase their investments in 2025. Bitwise's Chief Investment Officer, Matt Hougan, observes that 2024 marked a pivotal moment for crypto adoption, with advisors recognizing its potential.
However, challenges persist, as two-thirds of advisors still lack direct access to crypto for their clients. Access is limited, with only 35% of advisors able to directly purchase crypto for clients. Many advisors prefer crypto equity ETFs for market exposure without direct investment.
Regulatory concerns have also been a barrier, but in 2024, only 50% of advisors cited regulatory uncertainty as a major issue, down from previous years. This suggests a change in attitude among advisors who were once hesitant about crypto. In 2024, 8% of these advisors considered investing in crypto, which has now increased to 19%.
The Bitwise survey includes responses from 400 financial advisors in the US. Looking ahead, 2025 is expected to be a pivotal year for crypto in financial advisory, with rising demand, improved regulatory frameworks, and new investment products likely to drive further adoption.