A new survey shows that interest in cryptocurrency remains strong among financial advisors’ clients. “Despite market performance, the most common question was: ‘Should I consider an investment in crypto?’” the survey results reveal.
Financial Advisors Bullish About Crypto Long Term
Crypto asset manager Bitwise Asset Management published a report titled “Bitwise/Vettafi 2023 Benchmark Survey of Financial Advisor Attitudes Toward Crypto Assets” on Tuesday. This is Bitwise’s fifth annual study conducted in collaboration with Vettafi, an exchange-traded fund (ETF) platform.
The survey was conducted between Nov. 25, 2022, and Jan. 6, 2023, with the participation of 491 financial advisors, including independent registered investment advisors, broker-dealer representatives, financial planners, and wirehouse representatives from across the U.S. According to the survey findings:
Despite the sharp market correction of 2022, financial advisors remain highly engaged in crypto markets, with 15% allocating in client accounts and 90% receiving inbound questions from clients about the space.
“The survey is a reminder that crypto is one of the best business development opportunities in the financial advisor market,” said Bitwise’s chief investment officer, Matt Hougan.
The majority of respondents are bullish about bitcoin in the long term but bearish this year, with 63% expecting BTC to fall in 2023 while 60% believe it will be higher in five years. “While advisors’ interest in bitcoin (41%) was roughly twice that of ethereum (20%), their bullishness toward the two largest crypto assets was almost evenly split,” Bitwise described, adding that 53% favored BTC while 47% preferred ETH.
Reiterating that client interest in crypto “remains strong” as 90% of financial advisors “received a question about crypto from clients last year,” the report details:
Despite market performance, the most common question was: ‘Should I consider an investment in crypto?’
“Despite market volatility, 78% of advisors who currently have an allocation in client accounts plan to either maintain or increase that exposure in 2023,” the survey additionally found. Among respondents, 59% said “some” or “all” of their clients were investing in crypto on their own.
Moreover, “crypto equity ETFs” were financial advisors’ top crypto investment choice for 2023. The U.S. Securities and Exchange Commission (SEC) has approved several bitcoin futures ETFs but has yet to approve a spot bitcoin ETF.
Vettafi’s head of research, Todd Rosenbluth, commented:
Advisors and their end clients continue to want to learn more about crypto investments despite the volatility incurred in 2022. For those with a long-term focus, interest remains high.
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