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Half of advisors will recommend crypto in the next 12 months
Half of advisors plan to recommend cryptocurrency investments to their clients in the next 12 months, according to a March survey by the Digital Assets Council of Financial Professionals, the organization that connects the financial services industry to investment communities. digital assets.
Thirty-five percent of advisors plan to start recommending crypto within six months, up 70% from a December 2023 survey. Franklin Templeton Digital Assets sponsored the survey.
“These latest survey results clearly show that financial advisors are actively engaging in crypto to an unprecedented degree, thanks to both launch of bitcoin spot ETFsmaking investing in Bitcoin easier than ever and the rapid rise in the price of Bitcoin over the past 18 months,” DACFP founder Ric Edelman wrote in an email.
He added that advisors who do not integrate crypto into clients’ portfolios are not maximizing their investment potential.
Among advisors who asked their clients if they owned crypto assets, 92% had clients who had already invested. Additionally, 39% of advisors said 10-49% of clients own digital assets.
However, in March, only 34% of advisors surveyed recommended crypto to their clients, likely because businesses need more time to integrate new cryptocurrency directions. Bitcoin Spot ETF, suggested the DACFP. As of December 2023, the share of advisors recommending crypto stood at 59%.
A plurality of advisors (31%) recommend clients allocate 2% of their portfolios to crypto, 19% recommend a 5% allocation, and 15% of advisors recommend a 1% allocation. Another 8% of advisors recommend allocating between 10% and 14%.
Among advisors who do not recommend cryptocurrencies today but plan to start doing so in the future, 28% believe the ideal portfolio allocation is 5%. Additionally, 23% of advisors said they would recommend a 1% allocation, 15% said it should be 2%, while 15% believe the ideal allocation is between 2.5% and 3%.
The DACFP based the results of its March survey on the responses of 272 professionals. Financial advisors working at independent RIA firms accounted for 71% of respondents, while 19% of respondents worked at brokerage firms, 2% at wire services firms, and the remainder at other types of firms in the industry. financial services sector. Most (65%) work with clients with assets between $500,000 and $3.5 million. Eighty-six percent of respondents had more than 10 years of industry experience.