SAN FRANCISCO–(BUSINESS WIRE)–Bitwise Asset Management, the world’s leading crypto index fund manager, and VettaFi, a leading data-driven ETF platform, today released the results of the fifth annual Bitwise/VettaFi 2023 Benchmark Survey of Financial Advisor Attitudes Toward Crypto Assets. The survey found that, despite the sharp market correction of 2022, financial advisors remain highly engaged in crypto markets, with 15% allocation in client accounts and 90% receiving incoming questions from clients on the ‘space.
Importantly, the survey also showed that a majority of advisors have clients who invest in crypto outside of their advisory relationship. One reason is access: only 29% of advisors said they could access crypto in client accounts, with the rest blocked by company policy. This is a key opportunity to improve access to this space to enable advisors to better serve their clients.
Among the main results:
Short term bearish, long term bullish
Sixty-three percent of respondents believe the price of bitcoin will drop this year. But 60% think it will be higher in five years.
Crypto Allocation Remained Stable, Despite Market Volatility
Fifteen percent of advisors said they had allocated to crypto in client accounts in the past year. That’s roughly equal to last year’s survey (16%), and well ahead of 2021 (9%) and 2020 (6%).
Customer interest remains strong
Ninety percent of advisors received a question about crypto from clients last year. Despite the market’s performance, the most common question was, “Should I consider investing in crypto?”
Once invested, you tend to stay invested (or invest more)
Despite market volatility, 78% of advisors who currently have an allocation in client accounts plan to maintain or increase that exposure in 2023.
Access is a barrier to adoption
Only 29% of advisors said they could buy crypto in client accounts. Of this group, 52% currently allocate on behalf of customers, showing how important access is.
A major business opportunity
Fifty-nine percent of advisors said that “some” or “all” of their clients invest in crypto themselves, outside of the advisory relationship. This is a major business opportunity for advisors…and an area where advisors can help clients make more informed choices.
Crypto Equity ETFs Dominate Advisor Interest
“Crypto equity ETFs” were the top pick of advisors when asked how much exposure they most want to allocate in 2023.
“The survey serves as a reminder that crypto is one of the best business development opportunities in the financial advisor market,” said Matt Hougan, Chief Investment Officer for Bitwise Asset Management. “Ninety percent of advisors say they respond to client questions, and the majority say they have clients who invest in crypto outside of the advisory relationship. 2023 is the year to bring those investments in-house.”
“Advisors and their end clients continue to want to learn more about crypto investments despite the volatility incurred in 2022,” said Todd Rosenbluth, head of research at VettaFi. “For those focused on the long term, interest remains high.”
Over 400 financial advisors answered a series of questions about crypto-assets and their use in client portfolios. Survey respondents included independent registered investment advisers, brokerage representatives, financial planners and yarn house representatives from across the United States. This is the fifth year in a row that Bitwise and VettaFi have partnered with the survey.
The full results of the survey are available in the report here.
Based in San Francisco, Bitwise is one of the largest and fastest growing crypto asset managers. The company is known for running the world’s largest crypto index fund (OTCQX: BITW) and pioneering products spanning Bitcoin, Ethereum, DeFi and crypto-focused stock indices. Bitwise is focused on partnering with financial advisors and investment professionals to provide quality education and research. The Bitwise team combines technology expertise with decades of experience in traditional asset management and indexing, from companies such as BlackRock, Blackstone, Meta, and Google, as well as the US Attorney’s Office. Bitwise is backed by leading institutional investors and asset management executives, and has been featured in Institutional Investor, CNBC, Barron’s, Bloomberg, and The Wall Street Journal. For more information, visit www.bitwiseinvestments.com.
VettaFi, a data, analytics and thought leadership company, is transforming financial services from an industry to a community, one relationship at a time. Engaging millions of investors each year, VettaFi cultivates a cutting-edge data-driven ETF platform designed to empower and educate the modern financial advisor and institutional investor. In addition to providing interactive online tools and searches, VettaFi offers asset managers a range of indexing and digital distribution solutions to innovate and scale their businesses. For more information, visit www.vettafi.com.
The opinions expressed here are intended to provide insight or education and are not intended to be individual investment advice. Bitwise does not warrant that this information is accurate and complete and should not be relied upon as such.
Some of the Bitwise investment products may be subject to the risks associated with investing in crypto assets, including cryptocurrencies and crypto tokens. Because crypto assets are a new technological innovation with a limited history, they are a highly speculative asset. Future regulatory actions or policies may limit the ability to sell, trade, or use a crypto asset. The price of a crypto-asset can be impacted by the transactions of a small number of holders of this crypto-asset. Crypto assets may decline in popularity, acceptance, or usage, which may impact their price.
Before making any investment decision in respect of a Fund or Shares of a Fund, each investor should undertake their own independent review and investigation of the Fund, including the merits and risks of an investment in the Fund or the Shares, and should base its investment decision, including determining whether the Fund would be a suitable investment for the investor, on such review and investigation and should not rely on Bitwise or the Funds to make such an investment decision. Prospective investors should not construe the contents of this communication as legal, tax, investment or other advice. Each potential investor is urged to consult its own advisers with respect to the legal, tax, regulatory, financial, accounting and similar consequences of an investment in a Fund, the suitability of the investment for such investor and other relevant matters. regarding an investment in a Fund. .