According to a study conducted by Bitwise, there’s been an increase in cryptocurrency curiosity among American financial advisors since Donald Trump resumed his presidency.
It seems that approximately 56% of those surveyed have shown a stronger interest in cryptocurrency investment as a result of the 2024 U.S. election’s outcomes.
Surge in Crypto Allocation and Interest
Last year, from November 14 to December 20, a study was carried out among 430 financial advisors to gather their opinions on cryptocurrencies. In a January 9 update on platform X, Bitwise highlighted that the results were “extremely optimistic.
Matt Hougan, the company’s chief investment officer, stated that if there was any question about 2024 being a significant turning point for cryptocurrency, this year’s Bitwise/VettaFi survey clearly answers it. He further explained that more and more experts are seeing the potential in digital currencies, resulting in an unparalleled rise in investment allocation.
1) It’s been observed that digital asset divisions have seen a doubling year-on-year, reaching a new peak. As per the survey, a significant jump is expected in the adoption of crypto by consultants, with 22% planning to allocate it to client accounts in 2024 – a considerable rise from 11% in 2023.
Interest among clients in this specific investment class has reached an unprecedented level, as evidenced by the fact that 96% of wealth managers fielded questions from clients about it just last year. Moreover, there’s a strong inclination to keep these investments, with a whopping 99% of those who already have allocations in client accounts planning to either hold steady or increase their investment in 2025.
The study additionally uncovered a tendency among financial advisors to initiate transactions for their clients upfront. Interestingly, about one-fifth (19%) of those who haven’t entered this field yet are either very likely (definitely) or somewhat likely (probably) to join the industry by 2025, marking a significant increase from the 8% reported last year.
A significant number of consumers are venturing into cryptocurrency investments on their own, and a large majority (approximately 71%) of financial advisors have noted that some or all of their clients are integrating crypto into their investment portfolios without the advisor’s direct input.
As for what they’d choose as their top investment option in 2025, the experts showed a strong preference for crypto equity Exchange-Traded Funds (ETFs).
Entry Barriers Persist
Although more people are becoming interested in cryptocurrencies, getting involved in them can be difficult. In fact, only about one-third of survey participants said they have the ability to purchase crypto through their accounts, leaving approximately 67% who currently do not have this option available to them.
The point was underscored by Hougan, who pointed out that at present, portfolio managers are barred from providing virtual currency-based products. Yet, he remains optimistic that this disparity will diminish significantly by 2025, given the increasing mainstream acceptance and expansion in the cryptocurrency sector.
As a crypto investor, I’m gladly noting a lessening of regulatory uncertainties, although it remains a significant concern. Interestingly, in the latest survey, only half of respondents identified it as the primary hurdle to future expansion, which is a substantial decrease from past figures that fluctuated between 60% and 65%.
As a researcher delving into the dynamic world of cryptocurrencies, I find myself intrigued by Bitwise’s forward-looking perspective. They envisioned 2025 as marking the onset of a “Golden Age of Crypto,” a period that could witness significant growth and maturity for our digital asset sector. Their proposition is centered around an exchange-traded fund focused on companies boasting over 1,000 BTC in their corporate treasuries, suggesting a promising future for Bitcoin integration within the business world.
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2025-01-11 14:48