A new study by Bitwise, an asset management firm, revealed several points that highlight financial advisors’ growing interest in bitcoin (BTC) and cryptocurrencies.
More than 400 professionals including advisors, stockbroker representatives, and financial planners participated in the surveyreflecting a broad vision of the sector, expresses a company statement.
The study, carried out between November and December 2024, revealed that allocations to cryptoassets reached a new recordwhile regulatory uncertainty showed signs of decreasing.
According to the survey, there is 10 key takeaways that show the vision and position of investors:
2024 election results:
56% of American financial advisors indicated that the victory of certain candidates or parties in the 2024 elections boosted their optimism towards cryptocurrencies.
Donald Trump, who was elected president last November, has shown a pro-bitcoin and cryptocurrency stance, as reported by CriptoNoticias.
This represents more favorable policies for the digital asset industry or financial innovation, reducing uncertainty and increasing confidence in this type of asset.
Increase in allocations:
The increase from 11% in 2023 to 22% in 2024 represents a doubling in the allocation of cryptocurrencies in client portfolios.
This change reflects not only greater acceptance by institutional investors but also a growth in the infrastructure that supports these investmentsas cryptocurrency custodians and trading platforms.
Customer interest:
96% of advisors received inquiries about cryptocurrencies, suggesting that clients are looking for ways to diversify their investments or are intrigued by the growth potential of cryptocurrencies. This high interest may be driven by media coverage, the past performance of assets like bitcoin, or the integration of cryptocurrencies into daily commerce and services.
Investment Fidelity:
With 99% of advisors planning to maintain or increase their exposure to cryptocurrencies, there is evidence of a belief in the long-term value of these assets or their role as a hedge against inflation or economic instability. This trend could also reflect a better understanding of the cryptocurrency market and greater confidence in its stability.
Intention of new investments:
The 8% to 19% increase in initial allocation intent shows growing acceptance of cryptocurrencies as a legitimate asset class. This change may be influenced by cryptocurrency ETFs, which make investing easier without the need to directly handle digital currencies.
Advisors value experience:
When choosing a bitcoin ETF to invest in, respondents prioritize the expense ratio (58%), reflecting a sensitivity towards investment costswhile the emphasis on the issuer’s brand and support indicates an inclination toward the trust and stability offered by a well-known provider. This is crucial in a market where reputation and after-sales service can be decisive.
Access barriers:
Despite new financial products such as BTC and ether (ETH)-based ETFs, the infrastructure for purchasing and holding cryptocurrencies remains a challenge for many advisors. This could be due to regulations, technology, or simply a lack of suitable platforms at certain financial institutions..
Independent investment of clients:
The 71% of clients investing on their own suggests a cryptocurrency market more accessible to the general public, perhaps through trading apps or online services. This presents an opportunity for advisors to integrate these investments into more holistic strategies, offering advice on risks and opportunities.
Preference for cryptocurrency-related ETFs:
The financial advisors indicated that Cryptocurrency ETFs were the top choice (25%). This preference could be a strategy to gain exposure to the industry without the direct volatility of digital assets. These actions could include companies that develop crypto assets, mine cryptocurrencies, or provide related services.
Reduction in regulatory uncertainty:
The reduction in the perception of regulatory uncertainty went from 60% in 2021 to 50% in 2024. This could be the result of legislative developments or clearer regulations around cryptocurrencies. This could be facilitating a more conducive environment for institutional investment and innovation in the cryptocurrency space.
A turning point
Matt Hougan, Chief Investment Officer at Bitwise, called 2024 a crucial year for cryptocurrencies.
According to the businessman, although financial advisors show more interest than ever, two thirds are still unable to offer these investments to their clients. This suggests that 2025 could be a key year to consolidate the adoption of cryptoassets in traditional investment portfolios.
The Bitwise survey highlights that cryptocurrencies are moving from being a niche to becoming an integral part of financial strategies. This change reflects not only growing enthusiasm, but also the need to adapt to an evolving landscape.
