The new survey of 400+ advisors shows the percentage looking to allocate to crypto is set to more than double in 2020, from 6% to 13%.
PRNewswire – Bitwise Asset Management, the leading provider of cryptoasset index and beta funds, and ETF Trends, a leading source of exchange-traded fund news, tips, webcasts and investing ideas, today released the findings of the 2nd annual Bitwise / ETF Trends 2020 Benchmark Survey Of Financial Advisor Attitudes Toward Cryptoassets.
The survey was conducted during December 2019. More than 400 financial advisors answered a series of questions on cryptoassets and their use in client portfolios. Survey respondents included independent registered investment advisors, broker-dealer representatives, financial planners, and wirehouse representatives from across the U.S.
Among the key findings:
Advisors Are Increasingly Allocating To Crypto: The percentage of advisors allocating to crypto in client portfolios is expected to more than double in 2020, from 6% to 13%.
Advisors Are Attracted By Crypto’s Uncorrelated Returns: The No. 1 motivation for including crypto in portfolios is the uncorrelated nature of crypto’s returns. This feature was highlighted this year by 54% of advisors completing the survey, more than any other benefit, including returns. That number was up from 47% in last year’s survey.
Clients Are Asking Questions About Crypto: 76% of all financial advisors report receiving questions from clients on crypto in 2019.
Advisors Are Increasingly Optimistic About Bitcoin’s Price: 64% of advisors expect the price of bitcoin to appreciate over the next five years, up from 55% of advisors in last year’s survey. 35% of advisors expect the price of bitcoin to double or more by 2024, and 5% expect it to increase by 10X or more in value.
“2019 was a breakthrough year for crypto,” said Matt Hougan, Bitwise managing director and global head of research. “Crypto was the best-performing asset class in the world last year, with the Bitwise 10 Large Cap Crypto Index rising 52%. Moreover, crypto demonstrated real value as a hedge against geopolitical risk. Meanwhile, we saw significant evolution in the market for crypto custody and liquidity, with players like Fidelity, CME, and Intercontinental Exchange all launching solutions. As the survey shows, advisors are responding to the rapid maturation of the space by increasingly planning to incorporate crypto into their asset allocation mix.”
“Crypto continues to be top-of-mind for advisors searching out new and uncorrelated sources of return,” said Tom Lydon, founder and CEO of ETF Trends. “The survey results clearly indicate growing interest in crypto from advisors and their clients alike.”READ FULL SURVEY
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Based in San Francisco, Bitwise is one of the largest and fastest-growing crypto asset managers, offering both index and active strategies across a wide array of investment vehicles. The firm is known for creating the world’s largest crypto index fund (OTCQX: BITW), a suite of crypto-focused equity and futures ETFs, and investment products that span Bitcoin, Ethereum, DeFi, and NFTs. Bitwise focuses on partnering with financial advisors and investment professionals to provide quality education and research. The team at Bitwise combines expertise in technology with decades of experience in traditional asset management and indexing, coming from firms including BlackRock, Blackstone, Meta, and Google, as well as the U.S. Attorney’s Office. Bitwise is backed by leading institutional investors and asset management executives, and has been profiled in Institutional Investor, CNBC, Barron’s, Bloomberg, and The Wall Street Journal.