Annual Bitwise/VettaFi Survey Finds 60% of Financial Advisors Are Long-Term Bullish on Crypto Despite Volatile Market

Bitwise Asset Management, the world’s leading crypto index fund manager, and VettaFi, a leading data-driven ETF platform, today released the findings of the fifth annual Bitwise/VettaFi 2023 Benchmark Survey of Financial Advisor Attitudes Toward Crypto Assets. The survey found that, despite the sharp market correction of 2022, financial advisors remain highly engaged in crypto markets, with 15% allocating in client accounts and 90% receiving inbound questions from clients about the space.

Crucially, the survey also showed that a majority of advisors have clients who invest in crypto outside of their advisory relationship. One reason is access: Only 29% of advisors reported being able to access crypto in client accounts, with the rest being blocked by company policy. This presents a key opportunity for improved access to this space to enable advisors to better serve their clients.

Among the key findings:

Short-Term Bearish, Long-Term Bullish

Sixty-three percent of respondents believe that the price of bitcoin will fall this year. But 60% think it’ll be higher in five years.

Crypto Allocation Held Steady, Despite Market Volatility

Fifteen percent of advisors reported allocating to crypto in client accounts in this past year. That’s roughly even with last year’s survey (16%), and far ahead of 2021 (9%) and 2020 (6%).

Client Interest Remains Strong

Ninety percent of advisors received a question about crypto from clients last year. Despite market performance, the most common question was: “Should I consider an investment in crypto?”

Once Invested, You Tend To Stay Invested (Or Invest More)

Despite market volatility, 78% of advisors who currently have an allocation in client accounts plan to either maintain or increase that exposure in 2023.

Access Is a Barrier to Adoption

Only 29% of advisors said they can buy crypto in client accounts. Among that group, 52% currently allocate on behalf of clients, showing how important access is.

A Major Business Opportunity

Fifty-nine percent of advisors said “some” or “all” of their clients were investing in crypto on their own, outside of the advisory relationship. This is a major business opportunity for advisors … and an area where advisors can help clients make smarter choices.

Crypto Equity ETFs Dominate Advisor Interest

“Crypto equity ETFs” were advisors’ top choice when asked what exposure they were most interested in allocating to in 2023.

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