This is shown by a survey published by the provider of the cryptocurrency index fund Bitwise Asset Management The number of financial advisors allocating capital to cryptocurrencies has increased by around 50% in a year.
The survey, which was carried out in collaboration with investment website ETF Trends, consulted nearly 1,000 US financial advisors in December. The results show that 9.4% of client portfolios were exposed to crypto assets, compared to 6.3% a year ago.
From investment advisors who have not yet dealt with cryptocurrencies, 15% said they are “likely” to invest in virtual currency in 2021, and 2% said they will “definitely” invest in this asset class this year.
Financial planners are much more willing to invest their personal assets in cryptocurrency. 24% say they have already done so.
The global economic impact of the coronavirus pandemic appears to be the main motivator for financial planners on crypto assets.54% of respondents cite “uncorrelated returns” as the main benefit of investing in cryptocurrencies.
A quarter of the survey participants named “inflation protection” as the most attractive use of cryptocurrenciess compared to 9% in the previous year. Customer demand also appears to be significant. 81% of advisors said customers asked them about crypto assets in 2020, up from 76% in 2019.
Despite the growth of financial advisors assigning cryptocurrencies, Bitwise’s CIO noted that “Survey shows that it is still very early for cryptocurrencieswith less than 10% of advisors attracted today “adding:
“At the same time, acceptance and interest are increasing: the survey shows that the number of consultants attracted could double or increase in the next year.”
Tom Lydon, CEO of ETF Trends said: “Financial advisors are increasingly seeking exposure to alternative assets, and interest in cryptocurrencies is growing. “
The number of crypto naysayers within the investment advisor community is also falling.and the number of respondents who predict the price of Bitcoin will go to zero has dropped from 14% in 2019 to 8% last year, and has halved to just 4% this year.
Vice versa, The number of advisors predicting a six-digit Bitcoin price in five years has increased from 4% to 15% in a single year.
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