Among advisors already investing in crypto, nearly 90% expect to increase their allocations over the next 12 months, while 0% report plans to decrease, according to a recent survey by the New York-based Nasdaq stock exchange. On average, advisors currently investing in crypto – or considering to – state that their ideal crypto allocation is 6% of a client’s total portfolio.
The poll collected answers from a group of 500 financial advisors, and it shows that among those advisors who are already investing in crypto, some 86% expect to ramp up their allocations over the next year.
At the same time, 0% plan to decrease them which indicates that American financial advisors have a rock-solid belief in crypto’s potential for generating long-term profits.
On average, the surveyed advisors who are currently investing in crypto or plan to do so claim that the ideal crypto allocation would comprise 6% of a client’s total investment portfolio.
According to Jake Rapaport, Head of Digital Asset Index Research at Nasdaq,
“Over the last decade, financial advisors have been focused on shifting assets into index funds. As they incorporate digital assets into their investment strategies, they are expressing strong interest in a similar vehicle that can offer broad asset class exposure for their clients.”
Rapaport argued that “the vast majority” of the surveyed advisors plan to start allocating to crypto or increase their existing allocation to crypto, adding:
“As demand continues to surge, advisors will be looking for an institutional solution to the crypto question that now dominates client conversations.”
Furthermore, a robust 72% of American financial advisors would be more likely to allocate their customers’ assets to cryptoassets if a spot crypto exchange-traded fund (ETF) was available for purchase in the US.
ETFs are financial instruments that trade on an exchange like stock, but track a specific market or asset, such as bitcoin (BTC).
The exchange found that only 38% of the surveyed financial advisors claim it is likely a spot crypto ETF could be approved by American regulators this year. Some 31% consider it unlikely to happen, 24% say it is neither likely nor unlikely, and 7% claim they are not sure, as shown by data from the survey.
Some 50% of the surveyed professionals are currently investing their clients’ money in bitcoin futures ETFs, and a further 28% intend to start using such instruments in the coming 12 months, according to the survey.