Despite a sharp market correction in 2022, 60% of financial advisors believe BTC and other cryptocurrencies will rise over the next five years. This is due to their clients’ growing interest in investing in digital assets.
A survey by Bitwise Asset Management in partnership with VettaFi showed that financial advisors believe cryptocurrencies are promising in the long term, despite the current bearish trends in the crypto market. Thus, about 60% of respondents are confident that BTC quotes will grow over the next five years.
Advisors explain their confidence by their clients’ ever-growing interest in digital assets. 90% of them received requests for the possible purchase of cryptocurrencies during the last year. The most common question was: “Should I consider an investment in crypto?” As a reminder, a poor understanding of the value of these types of assets and their mechanisms remains the most common reason for skepticism about crypto investments.
Yet, 15% of client accounts were funded with various digital assets in 2022. This compares to 9% in 2021 and only 6% in 2020.
The survey by Bitwise and VettaFi was conducted between November 25, 2022, and January 6, 2023, with nearly 500 representatives of financial advisory firms. It found that 78% of financial advisors who manage cryptocurrency accounts on behalf of their clients intend to maintain or even increase their digital asset balances this year. It’s worth clarifying that the SEC is investigating Wall Street investment advisers. The regulator is focused on the compliance of the custody services they provide with client asset protection requirements.
As for the preferred assets, the interest of financial advisers in BTC was twice as high as in Ethereum tokens. So, 41% preferred investments in the first cryptocurrency and only 20% chose the largest altcoin. However, advisors assessed the prospects of investing in BTC and ETH almost equally — 53% for Bitcoin vs. 47% for Ethereum.
Recall that institutional investors also positively assess the long-term prospects of crypto investments and plan to increase the amount of digital assets in their portfolios over the next three years.
