Advisors Bullish on Crypto, See Long-Term Price Rise: Study

What You Need to Know

  • Ninety percent of advisors in a survey said they had received questions about cryptocurrency last year.
  • A majority of those advisors have clients who invest in crypto outside of the advisory relationship.
  • 2023 presents an opportunity to bring those investments in-house, Bitwise suggests.

Financial advisors continue to be highly engaged in crypto markets despite last year’s sharp market correction, according to The Bitwise/VettaFi 2023 Benchmark Survey of Financial Advisor Attitudes Toward Crypto Assets, released Wednesday.

Fifteen percent of advisors reported that they allocated to crypto in client accounts in 2022. That compares with 16% in the 2021 survey, and is well ahead of the 9% and 6% of advisors who did so in the two previous years.

Although 63% of advisors expect bitcoin’s price to fall this year, 60% believe it will be higher in five years. At midday on Wednesday, bitcoin was trading at around $22,600.

“Advisors and their end clients continue to want to learn more about crypto investments despite the volatility incurred in 2022,” Todd Rosenbluth, head of research for VettaFi, said in a statement. “For those with a long-term focus, interest remains high.”

The Bitwise/VettaFi survey took place from Nov. 25 to Jan. 6, and elicited 491 eligible, complete responses from financial advisors.

Robust Client Interest

Ninety percent of advisors in the survey said they had received questions about crypto in 2022. Fifty-six percent reported that despite market performance, clients’ most common question was, “Should I consider an investment in crypto?”

Asked whether their clients were investing in crypto on their own, 59% said yes, down from 68% in 2021.

“The survey is a reminder that crypto is one of the best business development opportunities in the financial advisor market,” Matthew Hougan, chief investment officer of Bitwise Asset Management, said in the statement.