Financial advisors see strong interest in cryptocurrencies: 90% receive inquiries about investing in cryptocurrencies, survey shows

Interest in cryptocurrency remains strong among financial advisor clients, a new survey shows. “Despite the market trend, the most common question was, ‘Should I consider investing in cryptocurrencies?’” the survey results reveal.

Financial advisors are bullish on cryptocurrencies for the long term

Crypto asset manager Bitwise Asset Management released a report on Tuesday titled “Bitwise/Vettafi 2023 Benchmark Survey of Financial Advisor Attitudes Toward Crypto Assets”. This is Bitwise’s fifth annual study conducted in partnership with Vettafi, an exchange-traded funds (ETF) platform.

The survey was conducted between November 25, 2022 and January 6, 2023, with the participation of 491 financial advisers, including independent registered investment advisers, broker-dealer representatives, financial planners and branch representatives from across the United States. Poll Results:

Despite the sharp 2022 market correction, financial advisors remain heavily engaged in the cryptocurrency markets, with 15% making allocations in client accounts and 90% receiving incoming client inquiries about the space.

“The survey reminds us that cryptocurrencies are one of the best business development opportunities in the financial advisor market,” said Bitwise chief investment officer Matt Hougan.

Most respondents are optimistic about bitcoin for the long term, but are bearish this year, with 63% expecting BTC to fall in 2023 while 60% believe it will be higher in five years. “While advisor interest in bitcoin (41%) was roughly double that in ethereum (20%), their upward trend in the two largest cryptocurrencies was nearly evenly split,” Bitwise described, adding that the 53 % preferred BTC while 47% preferred ETH.

Reiterating that client interest in cryptocurrencies “remains strong” as 90% of financial advisors “received a question about cryptocurrencies from clients last year,” the report details:

Despite the market trend, the most common question was: “Should I consider investing in cryptocurrencies?”

“Despite market volatility, 78% of advisors who currently have an allocation in client accounts plan to maintain or increase that exposure in 2023,” the survey also found. Among respondents, 59% said that “some” or “all” of their clients were investing in cryptocurrencies on their own.

Additionally, “cryptocurrency equity ETFs” were financial advisors’ top cryptocurrency 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 ETFs.

Vettafi’s research chief, Todd Rosenbluth, commented:

Advisors and their end clients continue to want to learn more about investing in cryptocurrencies despite the volatility seen in 2022. For those with a long-term focus, interest remains high.

What do you think of this survey? Let us know in the comments section below.

Kevin Helms

An Austrian business student, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests are in Bitcoin security, open-source systems, network effects, and the intersection of economics and cryptography.