Bitwise Asset Management, America’s largest crypto index fund manager, in collaboration with VettaFi, a top data-driven ETF platform, released their sixth annual survey results on financial advisors’ attitudes towards crypto assets. The “Bitwise/VettaFi 2024 Benchmark Survey” highlighted the continued client interest in crypto, advisors’ barriers to crypto access, and concerns about regulation and volatility. A key takeaway is the potential impact of a spot Bitcoin ETF approval, which could be a more significant catalyst for investor demand than many anticipate.
Key findings from the survey, conducted between October 20 and December 18, include:
- Less than half of the advisors expect a spot Bitcoin ETF approval in 2024, with only 39% believing in its approval this year. This contrasts with Bloomberg ETF analysts’ 90% likelihood prediction for a January approval.
- 88% of advisors interested in purchasing Bitcoin are waiting for the approval of a spot Bitcoin ETF.
- Only 19% of advisors can currently purchase crypto in client accounts.
- 98% of advisors with crypto allocations plan to maintain or increase their exposure in 2024.
- Crypto allocations above 3% in portfolios have more than doubled from 22% in 2022 to 47% in 2023.
- 88% of advisors received client inquiries about crypto last year.
- 59% of advisors noted that their clients are investing in crypto independently.
- Crypto equity ETFs are the most sought-after crypto exposure for 2024.
- 64% cited regulatory uncertainty as a barrier to crypto adoption, while volatility concerns followed at 47%.
- 71% of advisors favor Bitcoin over Ethereum, up from 53% last year.
Bitwise CIO Matt Hougan emphasized the importance of professional opinions in predicting crypto’s direction, noting the significant gap between advisor expectations and ETF experts’ views. The survey’s findings, with contributions from over 400 financial advisors, offer crucial insights into the evolving dynamics of crypto assets in client portfolios.
