A recent report by Bitwise and VettaFi shows that financial advisors are increasingly interested in investing in cryptocurrency, with 56% more likely to do so this year. The surge in crypto prices in 2024 and improved regulatory clarity have fueled this interest. The report also reveals that 96% of advisors received client inquiries about crypto in 2024, the highest level recorded. The proportion of advisors allocating crypto in client portfolios has doubled year-over-year, with 22% doing so in 2024. Institutional investors and Registered Investment Advisors are the most likely to allocate crypto. Clients are also independently investing in crypto, representing an opportunity for advisors. The report indicates that advisors who have not yet allocated crypto are becoming more inclined to do so, with 19% planning to invest in 2025. Furthermore, 99% of advisors already investing in crypto plan to maintain or increase their exposure. The 2024 US elections have had a significant impact on the crypto industry, with President-elect Donald Trump's support and pro-crypto candidates winning key victories in Congress. The report also highlights speculation about the US purchasing 1 million Bitcoins, which could trigger a global trend. However, challenges such as volatility and regulatory uncertainty remain barriers to advisor adoption. Custody concerns and valuation issues have decreased compared to previous years. Advisors prefer investment vehicles like crypto equity ETFs, spot crypto ETFs, and diversified crypto index funds. Advisors are exploring more sophisticated strategies to mitigate volatility and deliver differentiated returns. There is growing confidence in Bitcoin's future, with 67% believing its price will rise over the next year, and many projecting it to reach $250,000 to $1 million by 2030. Additionally, 83% believe Bitcoin will have a higher market cap than Ethereum within five years.



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