Financial advisors see strong interest in crypto – 90% receive inquiries about crypto investments, survey shows
Crypto asset manager Bitwise Asset Management published a report on Tuesday titled “Bitwise/Vettafi 2023 Benchmark Survey of Financial Advisors’ Attitudes Toward Crypto Assets”. This is Bitwise’s fifth annual study conducted through its collaboration with Vettafi, an Exchange Traded Fund (ETF) platform. The survey was conducted between November 25, 2022 and January 6, 2023 with the participation of 491 financial advisors, including independent registered investment advisors, broker-dealer representatives, financial planners, and warehouse representatives from across the United States. The survey concludes that despite a sharp market correction in 2022, financial advisors remain mostly engaged in the crypto markets with 15% allocated to client accounts and 90% fielding inbound queries from clients about client space. Its chief investment officer, Matt Hougan, said “the survey is a reminder that the crypto markets are one of the best advisory and business growth opportunities”.
Most respondents are bullish about bitcoin for the long term but bearish this year with 63 percent expecting bitcoin to fall in 2023 while 60 percent believe it will happen at most in 5 years. Advisors interest in bitcoin (41%) appears to be almost double that of Ethereum (20%) which was equally split between them towards the 2 biggest favored assets. Bitwise reported that 53% of them supported bitcoin while 47% preferred Ethereum.
90% of crypto investors are financial advisors. Customer interest remains strong, and meanwhile, one question received from customers about crypto last year, and despite market performance, the most common question, according to report details, was ‘Should I invest in cryptocurrencies? ? Additionally, it was found that 78% of advisors who currently hold clients’ accounts are either planning to retain that exposure into 2023, regardless of market trends. 59% of respondents said they had “some” or “all” clients investing in crypto on their own, and furthermore, “crypto equity ETFs” were financial advisors’ top investment choice for 2023. The U.S. Security and Exchange Commission has approved a bitcoin futures ETF and has yet to approve a spot bitcoin ETF. Vettafi Head of Research, Todd Rosenbluth, commented that advisors and their end clients continue to learn about crypto investing despite the volatile trend expected in 2022, so interest remains high for those with a long-term focus.
