Trump Victory Spurs More Financial Advisors to Consider Crypto Investments: Survey

A latest survey by Bitwise has revealed an increase in cryptocurrency curiosity amongst U.S.-based monetary consultants following Donald Trump’s return to the White Home.

The findings point out that 56% of respondents at the moment are extra inclined to spend money on crypto because of the outcomes of the 2024 U.S. election.

Surge in Crypto Allocation and Curiosity

The study, carried out between November 14 and December 20 final 12 months, requested 430 monetary advisors about their views on crypto. In a January 9 post on X, Bitwise emphasised that the end result was “extra bullish than ever.”

“For those who had any doubt that 2024 was an enormous inflection level for crypto, this 12 months’s Bitwise/VettaFi survey dispels it,” mentioned Matt Hougan, the agency’s chief funding officer. He added that professionals are more and more recognizing the potential of cryptocurrency, resulting in unprecedented ranges of allocation.

Digital asset apportionments have additionally doubled year-over-year, reaching an all-time excessive. In line with the survey, 22% of consultants reported allocating crypto to shopper accounts in 2024, a serious enhance from 11% in 2023.

Consumer curiosity within the asset class can also be at an all-time excessive, with 96% of wealth managers receiving inquiries from clients about it final 12 months. Moreover, there was a bent to retain such investments, with 99% of those that at present have allotments in buyer accounts planning to both keep or increase the quantity in 2025.

The report additionally revealed that monetary consultants are extra inclined to make preliminary purchases for his or her clients. Of those that haven’t but ventured into the sector, 19% are “positively” or “most likely” planning to take action in 2025 in comparison with the 8% reported the earlier 12 months.

Many shoppers are additionally making crypto investments independently. 71% of the advisors reported that “some” or “all” of their purchasers are including them to their portfolios with out their involvement.

In the meantime, when requested about their most popular type of funding for 2025, the consultants overwhelmingly favored crypto fairness ETFs.

Entry Boundaries Persist

Regardless of this rising curiosity, entry into crypto stays a problem. Solely 35% of respondents reported having the ability to purchase it in shopper accounts, that means two-thirds nonetheless lack entry to such choices for his or her customers.

Hougan emphasised this hole, noting that portfolio managers are nonetheless restricted from providing digital forex merchandise. Nevertheless, he expressed confidence that this distinction could be narrowed in 2025 as mainstream adoption within the sector grows.

On a extra constructive word, regulatory uncertainty, whereas nonetheless a priority, has eased. Within the survey, 50% cited it as the highest impediment to future progress. This determine marks a notable lower from earlier outcomes, which ranged between 60% and 65%.

Bitwise, which proposed a brand new exchange-traded fund to spend money on corporations holding greater than 1,000 BTC of their company treasuries, beforehand shared an optimistic outlook for 2025, claiming it will usher within the “Golden Age of Crypto.”