A survey published by crypto index fund provider, Bitwise, has revealed that nearly 50% of investment advisors have allocated capital towards crypto assets over the past year.
The assessment was conducted in December in partnership with ETF Trends, an investment website. It quizzed 1,000 financial advisors on their crypto investment moves in the past year, as well as their future plans.
According to the report, 9.4% of client portfolios were exposed to cryptocurrencies. This is 3.1% higher than the previous year. Meanwhile, 15% of investment advisors who are yet to allocate any resources to cryptos said that they will “probably” do so in 2021. Another 2% were confident about investing in digital assets this year.
A significant percentage of the respondents pointed to the global economic instability caused by the coronavirus pandemic as the primary reason driving investment. 54% of those surveyed named “uncorrelated returns” as the major benefit of investing in cryptocurrencies. And rightly so, Bitcoin went from around $18k to over $40k within two months.
About 25% of the survey respondents said “inflation hedging” was the most-attractive use-case of digital assets.
Overall, financial advisors claim that the demand from their clients for crypto exposure is on the rise. More than 80% of the survey participants reported that clients had inquired about crypto offerings in 2020.
But despite the ongoing frenzy and demand from institutional investors, Bitwise’s CIO stated that the industry is just starting to pick up.
The survey shows it’s still early days for crypto, with less than 10% of advisors allocating today […]At the same time, adoption and interest are growing: The survey suggests the number of advisors allocating could double or more in the year ahead.