A recent report by Bitwise and VettaFi reveals that 56% of financial advisors are more likely to invest in crypto this year, with the 2024 US election results pivoting sentiment.

The 2024 surge in crypto prices and increased regulatory clarity have sparked greater interest from clients and advisors alike. In 2024, 96% of advisors fielded client inquiries about crypto, the highest level recorded, up from 88% in 2023.

Additionally, the proportion of advisors allocating crypto in client portfolios doubled year-over-year, rising to 22% in 2024, compared to 11% in 2023. Institutional investors (30%) and Registered Investment Advisors (RIAs) (28%) were the most likely to allocate crypto, followed by wirehouse representatives (24%).

Advisors’ clients are also increasingly taking independent positions in crypto, with 71% investing in crypto independently of their advisors in 2024, up from 59% in 2023. These “held-away” assets represent a growing opportunity for advisors looking to integrate crypto into broader wealth plans.

The report surveyed 430 eligible responses from financial advisors. 

The report paints a picture of an industry gaining momentum. Advisors who have yet to allocate crypto are increasingly inclined to do so, with 19% planning to invest in 2025, up from 8% last year. 

Meanwhile, 99% of advisors already investing in crypto plan to maintain or increase their exposure.

Political momentum

The 2024 US elections marked a significant turning point for crypto. President-elect Donald Trump’s embrace of digital assets, including a strategic Bitcoin (BTC) reserve proposal, has fueled optimism. 

Additionally, pro-crypto candidates secured key victories in Congress, tilting the political landscape in favor of the industry.

The report also highlighted mounting speculation over Senator Cynthia Lummis’ (R-WY) proposal for the US to purchase 1 million Bitcoins over five years,

Go to Source to See Full Article
Author: Gino Matos