Nasdaq’s research arm has posted a report stating that of the 500 financial advisors investing or planning to invest in cryptocurrency, 72% would invest in spot ETFs for Bitcoin. It remains to be seen if such products will be launched in the U.S.
Advisors who have invested in cryptocurrencies control a combined $26 trillion in assets. 80% of them are going to increase their investments over the next 12 months. At the same time, none intend to reduce their allocation to digital assets. Half of this group of financial advisors are currently using Bitcoin futures ETFs, and another 28% want to start using them within the next year.
Advisors who invest or are considering investing in digital assets find it effective to limit the share of cryptocurrency products in a portfolio to 6%.
Jake Rapaport, head of digital asset index research at Nasdaq, states that advisors are increasing their investments in cryptocurrencies:
“The vast majority of advisors we surveyed are either planning to start investing in cryptocurrencies or increasing their investments. As demand continues to grow, advisors will be looking for an institutional solution to the crypto question that now dominates conversations with clients”.
The head of Nasdaq added that those investing in cryptocurrencies have to carefully check project descriptions for regulatory compliance.
About 10% of advisors say they are well versed in cryptocurrencies, and another 9% say they are very confident in their ability to advise clients on digital assets. Nearly all of the financial advisors surveyed (98%) expressed an interest in learning more about cryptocurrency and digital assets.
Recently, consulting agency Coalition Greenwich found that despite the popularity of crypto-assets, more than 70% of financial advisors do not know how to offer cryptocurrency products.