On Tuesday, Bitwise Asset Administration, a number one supplier of crypto index funds, and ETF Trai
On Tuesday, Bitwise Asset Administration, a number one supplier of crypto index funds, and ETF Traits, a number one supply of exchange-traded fund information, ideas, webcasts, and investing concepts, launched the findings of the Bitwise/ETF Traits 2021 Benchmark Survey Of Monetary Advisor Attitudes Towards Cryptoassets.
Almost 1,000 monetary advisors answered a sequence of questions on cryptoassets and their use in shopper portfolios. The survey respondents included unbiased registered funding advisors, broker-dealer representatives, monetary planners, and wirehouse representatives from throughout the U.S.
The data was sure confirmed to be fairly beneficial. Among the many key findings, it was proven there was a Almost 50% enhance within the variety of advisors allocating to crypto in contrast With final yr. The share of advisors allocating to crypto in shopper portfolios rose from 6.3% to 9.4% in 2020.
Moreover, 17% of advisors are contemplating making their first allocation to crypto in 2021. Amongst advisors who will not be at the moment allocating to crypto, 17% are both “undoubtedly” (2%) or “in all probability” (15%) allocating in 2021. If all achieve this, it might greater than double the variety of advisors allocating to crypto, bringing adoption to over 1 in each 5 advisors.
The primary motivation for advisors is crypto’s uncorrelated returns, and inflation hedging is of rising curiosity. 54% of advisors chosen “uncorrelated returns” as a motivation for together with crypto in portfolios. This discovering was in step with final yr’s survey outcomes. “Inflation hedging” noticed the most important uptick in curiosity, with 25% of advisors highlighting it as a sexy characteristic of crypto, up from simply 9% final yr.
With that in thoughts, most advisors are getting questions on crypto from shoppers. 81% of all monetary advisors reported they had been receiving questions from shoppers on crypto in 2020, up from 76% in 2019.
And lastly, advisors are more and more optimistic about bitcoin’s value. 15% count on the value of bitcoin to exceed $100,000 inside 5 years, up from simply 4% in 2019. In the meantime, the proportion anticipating bitcoin’s value to fall to zero decreased sharply, from 8% in final yr’s survey to 4% this yr.
The Development Takeaway
This continues the development of the previous few years: In Bitwise’s 2019 survey, 14% of surveyed advisors thought the value would fall to zero. It appears almost two-thirds of advisors modified their minds about that.
“The survey reveals it’s nonetheless early days for crypto, with lower than 10% of advisors allocating at the moment,” mentioned Matt Hougan, Chief Funding Officer for Bitwise. “On the identical time, adoption and curiosity are rising: The survey suggests the variety of advisors allocating may double or extra within the yr forward.”
“Monetary advisors are more and more on the lookout for publicity to various belongings, and curiosity in crypto is rising,” mentioned Tom Lydon, founder and CEO of ETF Traits. “We’ve additionally seen a gentle development of curiosity in crypto from shoppers of economic advisors within the three years we’ve run this survey collectively. I see no motive for that to vary within the yr to return.”
The survey for the report was carried out in December 2020. Full findings of the survey can be found within the report right here.
For extra info, go to www.bitwiseinvestments.com.
For extra market tendencies, go to ETF Traits.
Learn extra on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.