A survey published by Bitwise found that about 10% of investment advisors convert their client portfolio allocations to crypto assets.
A survey published by crypto index fund provider Bitwise Asset Management found that the number of investment advisors allocating capital to crypto increased by about 50% in one year.
Orientation to crypto assets
Approximately 1,000 US-based financial advisors were questioned in December in the survey conducted in partnership with the investment-oriented website ETF Trends. Findings show that 9.4% of customer portfolios are directed towards crypto assets. This figure was 6.3% a year ago.
15% of the investment advisors who have not allocated crypto yet stated that they will “probably” invest in cryptocurrency in 2021, and 2% will “definitely” invest in the asset class this year.
Financial planners are much more willing to invest their personal fortunes in cryptocurrency, and 24% say they have already done so.
Benefits of orientation
The global economic reflection of the coronavirus pandemic seems to be the primary motivation driving financial planners to crypto assets, and 54% of respondents define “unrelated returns” as the main benefit of moving to cryptocurrency.
A quarter of the survey respondents identified “inflation hedging” as the most attractive way of cryptocurrency, up 9% over the previous year. Demand from customers also appears to be significant, and 81% of consultants state that customers were questioning themselves about crypto assets in 2020.
Despite the increase in financial advisors making allowances for crypto, Bitwise’s CIO “survey shows that it’s still early days for crypto, and less than 10% of consultants are allocating money to crypto today.”
“More and more financial advisors want to turn to alternative assets, and interest in crypto is on the rise,” says Tom Lydon, CEO of ETF Trends.