A growing number of financial advisors recognize the potential of cryptocurrency investments, yet many clients are left to navigate the market independently due to access barriers.
A recent survey conducted by Bitwise Asset Management and ETF data provider VettaFi highlights this disconnect, even as interest in digital assets like Bitcoin and Ethereum surges.
The survey, conducted between November 14 and December 20, 2024, gathered insights from over 400 financial advisors. It revealed that while crypto allocations in client portfolios have doubled year-over-year to 22%, only 35% of advisors have the ability to invest directly in client accounts. This lack of access continues to impede broader adoption within the advisory sector.
The data also underscores the growing trend of clients bypassing advisors for crypto investments. A striking 71% of advisors reported that some or all of their clients are independently investing in cryptocurrencies. Despite these challenges, enthusiasm for crypto within the advisory community is gaining momentum.
Matt Hougan, Chief Investment Officer at Bitwise, emphasized the untapped potential:
“Advisors are awakening to crypto’s potential like never before, and they’re allocating like never before. But perhaps most staggering is how much room we still have to run, with two-thirds of all financial advisors — who advise millions of Americans and manage trillions in assets — still unable to access crypto for clients.”
The survey also revealed that 96% of advisors received inquiries about cryptocurrencies from clients in 2024, indicating widespread interest. Among advisors already exposed to crypto, 99% plan to maintain or increase their allocations in 2025. Optimism is also growing among those yet to invest, with 19% expressing plans to add crypto exposure in 2025, more than double the figure from 2023.
In another development, Bitwise recently rebranded its European XRP exchange-traded product (ETP) as part of its efforts to solidify its position in the crypto sector. The fund, now called the Bitwise Physical XRP ETP (GXRP), provides European investors, especially institutional ones, with direct exposure to XRP, the native token of Ripple’s XRP Ledger (XRPL).
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