{"id":108247,"date":"2021-01-13T05:47:05","date_gmt":"2021-01-13T05:47:05","guid":{"rendered":"https:\/\/precoinnews.com\/?p=108247"},"modified":"2021-01-13T05:47:05","modified_gmt":"2021-01-13T05:47:05","slug":"number-of-financial-planners-investing-in-crypto-increases-by-50","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/number-of-financial-planners-investing-in-crypto-increases-by-50\/","title":{"rendered":"Number of financial planners investing in crypto increases by 50%"},"content":{"rendered":"
A survey published by crypto index fund provider Bitwise Asset Management has found the number of financial advisors allocating capital toward crypto has increased by roughly 50% in one year.<\/p>\n
The survey, conducted in partnership with investment website ETF Trends, queried nearly U.S.-based 1,000 financial advisors in December. The findings indicate that 9.4% of client portfolios were exposed to crypto assets \u2014 up from 6.3% one year ago.<\/p>\n
Of the investment advisors who have not yet allocated to crypto, 15% stated they will \u201cprobably\u201d invest in virtual currency during 2021, with 2% stating they will \u201cdefinitely\u201d invest in the asset class this year.<\/p>\n
Financial planners are much more keen to invest their personal wealth in cryptocurrency, with 24% saying they have already done so. <\/p>\n
The global economic fallout from the coronavirus pandemic appears to be the primary motivation that is driving financial planners towards crypto assets, with 54% of respondents describing \u201cuncorrelated returns\u201d as the principal benefit of cryptocurrency exposure.<\/p>\n
One-quarter of survey participants described \u201cinflation hedging\u201d as crypto\u2019s most-attractive utility, up from 9% the previous year. Demand from clients also appears significant, with 81% of advisers reporting that clients have queried them regarding crypto assets in 2020, up from 76% in 2019. <\/p>\n
Despite the growth in financial advisors making allocations to crypto, Bitwise\u2019s CIO remarked that \u201cthe survey shows it\u2019s still early days for crypto, with less than 10% of advisors allocating today,\u201d adding:<\/p>\n
\u201cAt the same time, adoption and interest are growing: The survey suggests the number of advisors allocating could double or more in the year ahead.\u201d<\/p><\/blockquote>\n
ETF Trends CEO Tom Lydon stated: “Financial advisors are increasingly looking for exposure to alternative assets, and interest in crypto is rising.\u201d<\/p>\n
The number of crypto-naysayers within the investments advisor community is also falling, with the number of respondents predicting BTC will plummet to zero dropping from 14% in 2019 to 8% last year, and then halving to just 4% this year.<\/p>\n
Conversely, the number of advisors predicting six-figure Bitcoin prices within five years has increased from 4% to 15% in a single year.<\/p>\n