A survey recently published by Bitwise Asset Management reveals that very few financial advisors have allocated digital assets for their clients’ investment portfolios, however, more claim they’re planning to invest in cryptocurrencies this year.
More than 400 financial advisors responded to Bitwise’s survey in December 2019. Only around 6% of the financial consultants said they presently have allocations to crypto-assets in their client portfolios.
However, an additional 7% noted that they’d either “definitely” (1%) or “probably” (6%) be investing in digital assets on behalf of their clients this year. All other advisors responding to the survey stated that they either “probably” or “definitely” will not be allocating client investments to crypto.
The survey’s results confirmed that crypto’s perceived ability to serve as a hedge against inflation is the main motivation for adding it to client portfolios. Approximately 54% of those surveyed said that the relatively low correlation between crypto-asset returns and the returns of traditional assets is one of the most appealing aspects of investing in digital currencies.
This seemingly positive attitude toward crypto investments comes from advisors’ realization and acknowledgment that their clients are genuinely interested in digital asset investments. About 76% of survey respondents noted that their clients had regularly been asking about cryptocurrency investment opportunities in 2019. Around 72% of advisors that took part in the survey said that their clients might have invested in crypto on their own.
Approximately 64% of respondents noted that they’re expecting the Bitcoin (BTC) price to increase significantly in the coming years.
Based in San Francisco, Bitwise Asset Management launched one of the first cryptocurrency-based index funds and is an established provider of “rules-based exposure” to digital assets. Bitwise aims to provide a high level of security, tax preparation, and investor relations services. The firm also intends to offer a reliable and transparent path for potential investors to get a diversified exposure to cryptocurrencies.