According to a recent survey conducted by crypto index fund provider, Bitwise Asset Management, there has been a 49% increase in the number of financial advisors allocating client funds to crypto in the past 12 months. Simultaneously, financial advisors have reported an 81% increase in client enquiries related to crypto, during 2020.
The survey took place in December 2020, questioning nearly 1,000 US-based financial advisors. The findings show that the percentage of advisors allocating to crypto in client portfolios rose from 6.3% to 9.4% in 2020.
78% of advisors surveyed, who have allocations to crypto in client portfolios, said that they intend to increase their clients’ allocation to crypto in the next 12 months, while 22% said that they intend to hold steady.
Of the advisors who had not yet allocated client funds to crypto, 17% said that they were considering making their first allocation to crypto in 2021. Of the 17%, 2% said that they would “definitely” and 15% said that they would “probably” be allocating in 2021.
When asked “What is attractive about adding crypto exposure to client portfolios?”, 54% of advisors selected “uncorrelated returns” as a motivation for including crypto in portfolios.
– The No. 1 Motivation For Advisors Is Crypto's Uncorrelated Returns, And Inflation Hedging Is Of Rising Interest: 54% of advisors selected “uncorrelated returns” as a motivation for including crypto in portfolios. pic.twitter.com/OQAdq0uDU4
— Bitwise (@BitwiseInvest) January 12, 2021
When asked “What would make you more comfortable allocating to cryptoassets in the future?”, ‘Better regulation’ topped the list, with 51% of advisors highlighting regulatory progress as a key milestone for the future.
Lastly, advisors were questioned as to where they think the price of Bitcoin will be in five years’ time. Most of the advisors (64%) believe that the price of Bitcoin will be above $25,000 in the next 5 years.