Crypto Interest Among FA Clients “Stronger Than Ever” — Evening Brief – 01.13.25
Cryptocurrency has consistently garnered widespread acceptability, and the endorsement it earned from President-elect Donald Trump during the 2024 election has reinforced its standing. A recent survey indicates that its increasing popularity is prompting a substantial change among financial advisors, who are anticipated to demonstrate a greater willingess to invest in the asset in 2025—a change that was nearly inconceivable only a few years ago.
Bitwise Asset Management, a company focused on crypto index funds and exchange-traded funds, along with VettaFi, a leading data-centric ETF platform, have released the seventh annual “Bitwise/VettaFi 2025 Benchmark Survey of Financial Advisor Attitudes Toward Crypto Assets.” The survey revealed that 56% of advisors want to boost crypto investments in 2025, attributing the decision to the election results.
The survey underscores an evolving perception of cryptocurrency, which follows the SEC’s endorsement of Bitcoin and Ether ETFs earlier this year. “Advisors are awakening to crypto’s potential like never before, and they’re allocating like never before,” said Bitwise CIO Matt Hougan.
Client’s interest in cryptocurrency reached an all-time high in 2024, with 96% of financial advisors being asked about it, the survey revealed. Financial advisor allocation to client cryptocurrency holdings doubled to 22% in 2024 from 2023, reaching a record high. Among those already invested, 99% plan to maintain or increase their exposure this year.
The survey also revealed that 58% of advisors consider the expense ratio, which denotes the cost of owning an ETF, as the most significant factor. It is important to note that the brand of the issuer (46%) and issuer support (43%) were more important factors in the decision to invest in Bitcoin ETFs than assets under management (28%).
Despite tremendous growth in Bitcoin ETFs, access to cryptocurrency is still limited, with only 35% of financial advisors reporting the ability to purchase cryptocurrency for client accounts. Regulatory uncertainty remains the top barrier, cited by 50% of advisors—an improvement over previous studies, which ranged between 60% and 65%.
Hougan pointed out that two-thirds of financial advisors, who collectively manage trillions of dollars, still lack access to crypto for their clients. He expressed optimism that this could change in 2025 as the “mainstream era of crypto” gains momentum.
“Based on the latest data, the future is very bright as advisors and investors gain more access and education about the potential benefits,” added Todd Rosenbluth, Head of Research for TMX VettaFi.
Conducted between November 14 and December 20, 2024, more than 400 financial advisors answered a series of questions on crypto assets and their use in client portfolios. Respondents included independent RIAs, broker-dealer representatives, financial planners, and wirehouse representatives from across the U.S.