Fourth annual survey reveals the latest thinking from advisors on crypto allocations, bitcoin ETFs, crypto equities, and more
Bitwise Asset Management, a leading provider of crypto index funds, and ETF Trends, a leading source of exchange-traded fund news, tips, webcasts, and investing ideas, today released the findings of the Bitwise/ETF Trends 2022 Benchmark Survey of Financial Advisor Attitudes Toward Crypto Assets.
Over 600 financial advisors answered a series of questions on crypto assets 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. This is the fourth consecutive year that Bitwise and ETF Trends have partnered on the survey.
Among the key findings:
- Advisors Allocating to Crypto Jumped by Over 65%: The percentage of advisors allocating to crypto in client accounts grew sharply, from 9% last year to 15% this year. Those numbers were up from 6% two years ago. This year, an additional 14% of advisors said they will “probably” or “definitely” allocate in 2022.
- Client Interest in Crypto Soared: An incredible 94% of advisors received questions from clients about crypto in 2021, up from 81% the year before, highlighting the significant levels of retail investor demand for crypto exposure.
- It’s Not Just About Bitcoin Anymore: The IPO of Coinbase in April 2021 appears to have focused advisor attention on crypto equities: Roughly equal numbers of advisors indicated a desire to allocate to crypto equities (46%) vs. crypto assets like bitcoin (45%).
- The Wait for a Spot ETF Continues: Despite the October 2021 debut of a bitcoin futures ETF, 82% of advisors said they’d prefer investing in a spot bitcoin ETF vs. a futures-based alternative.
- Advisors Are Increasingly Bullish on Crypto Valuations: More than half (53%) of respondents believe that the price of bitcoin will top $100,000 within five years. In last year’s survey, only 15% of respondents thought bitcoin would rise that high.
- Regulation and Volatility Are Keeping Some Advisors on the Sidelines: 60% of advisors cited “regulatory uncertainty” as a barrier to greater crypto adoption in portfolios, up from 52% in last year’s survey. Volatility also loomed large, with 53% of respondents expressing concern in that area, compared to 38% the year before.
“We are approaching the tipping point for the widespread adoption of crypto by financial advisors,” said Matt Hougan, Chief Investment Officer for Bitwise Asset Management. “Two years ago, just 6% of advisors were allocating to crypto in client accounts; today it’s 15% and our survey suggests it will be nearly 30% by year-end. The implications are significant, as financial advisors direct the vast majority of private individual wealth in America. Advisor engagement in the space isn’t just growing … it’s growing at an accelerating rate.”
“Advisors and their clients are becoming more confident and discerning in their understanding of crypto,” said Tom Lydon, founder and CEO of ETF Trends. “Advisors are looking for vehicles to express their viewpoints on the crypto market, and we are excited to share the data on how those views have evolved this year.”
Based in San Francisco, Bitwise is one of the largest and fastest-growing crypto asset managers. As of December 31, 2021, Bitwise managed over $1.3 billion across an expanding suite of investment solutions. The firm is known for managing the world’s largest crypto index fund (OTCQX: BITW) and pioneering products spanning Bitcoin, Ethereum, DeFi, and crypto-focused equity indexes. 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, Facebook, 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. For more information, visit www.bitwiseinvestments.com.
About ETF Trends
ETF Trends was founded in 2005 by industry luminary Tom Lydon, who has carved out an enviable position as a true thought leader and tireless educator of the financial advisor community regarding ETFs. ETF education is delivered daily via multiple digital mediums including web, webcasts, research, video, podcasts, surveys, and virtual summits. ETF Trends has become the leader in ETF industry coverage and evolving trends. It’s where top-producing financial advisors and self-directed investors come together for a one-stop update on what’s new, what’s important, and how, why, and which ETFs are performing. News stories focus intently on educating investors regarding specific offerings, current market trends, sectors, asset classes, economies, and sentiment about every ETF market. The ETF Trends editorial team offers insightful content to readers to help them make the most of ETF investing and ETF trends. For more information, visit www.etftrends.com.
Certain of the Bitwise investment products may be subject to the risks associated with investing in crypto assets, including cryptocurrencies and crypto tokens. Because crypto assets are a new technological innovation with a limited history, they are a highly speculative asset. Future regulatory actions or policies may limit the ability to sell, exchange or use a crypto asset. The price of a crypto asset may be impacted by the transactions of a small number of holders of such crypto asset. Crypto assets may decline in popularity, acceptance or use, which may impact their price.
Prior to making any investment decision in respect of any Fund or Shares of any Fund, each investor must undertake its own independent examination and investigation of the Fund, including the merits and risks involved in an investment in the Fund or Shares, and must base its investment decision, including a determination of whether the Fund would be a suitable investment for the investor, on such examination and investigation and must not rely on Bitwise or the Funds in making such investment decision. Prospective investors must not construe the contents of this communication as legal, tax, investment, or other advice. Each prospective investor is urged to consult with its own advisors with respect to legal, tax, regulatory, financial, accounting and similar consequences of investing in any Fund, the suitability of the investment for such investor and other relevant matters concerning an investment in any Fund.
Frank Taylor/Ryan Dicovitsky
Dukas Linden Public Relations