Blockstream Asset Management, a leading provider of crypto index funds, and ETF Trends, a leading source of exchange-traded fund news, tips, webcasts, and investing ideas, today released the findings of the Blockstream/ETF Trends 2022 Benchmark Survey of Financial Advisor Attitudes Toward Crypto Assets.
Over 600 financial advisors answered a series of questions on crypto-assets and their use in client portfolios. Survey respondents included independent registered investment advisors, broker-dealer representatives, financial planners, and wirehouse representatives from across the U.S. This is the fourth consecutive year that Blockstream and ETF Trends have partnered on the survey.
Among the key findings:
Advisors Allocating to Crypto Jumped by Over 65%: The percentage of advisors allocating to crypto in client accounts grew sharply, from 9% last year to over 15% this year. Those numbers were up from 6% two years ago. This year, an additional 14% of advisors said they will “probably” or “definitely” allocate in 2022.
Client Interest in Crypto Soared: An incredible ninety-four per cent (94%) of advisors received questions from clients about crypto in 2021, up from 81% the year before, highlighting the significant levels of retail investor demand for crypto exposure.
It’s Not Just About Bitcoin Anymore: The IPO of Coinbase in April 2021 appears to have focused advisor attention on crypto equities: Roughly equal numbers of advisors indicated a desire to allocate to crypto equities (46%) vs. crypto assets like bitcoin (45%).
The Wait For a Spot ETF Continues: Despite the October 2021 debut of a bitcoin futures ETF, 82% of advisors said they’d prefer investing in a spot bitcoin ETF vs. a futures-based alternative.
Advisors Are Increasingly Bullish on Crypto Valuations: More than half (53%) of respondents believe that the price of bitcoin will top $100,000 within five years. In last year’s survey, only 15% of respondents thought bitcoin would rise that high.
Regulation and Volatility Are Keeping Some Advisors on the Sidelines: 60% of advisors cited “regulatory uncertainty” as a barrier to greater crypto adoption in portfolios, up from 52% in last year’s survey. Volatility also loomed large, with 53% of respondents expressing concern in that area, compared to 38% the year before.