Survey Reveals Growing Confidence in Crypto Among Financial Advisors and Clients

Is crypto a good investment? Crypto adoption is on the rise as a survey reveals growing confidence in crypto financial advisor services.

A recent survey conducted by the Digital Assets Council of Financial Professionals (DACFP) and Franklin Templeton Digital Assets reveals a notable shift in the attitudes of financial advisors and their clients toward cryptocurrencies.

The findings indicate increased adoption of digital assets in portfolios and growing recommendations by financial professionals, signaling rising confidence in the asset class.

The Q3 2024 Advisor Pulse Survey gathered insights from 619 financial professionals, 61% of whom serve clients with assets ranging from $500,000 to $3.5 million.

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Is Crypto a Good Investment? Crypto Financial Advisors Report Surge in Clients’ Crypto Holdings

The data show that 19% of advisors now report more than half of their clients hold digital assets, up from 15% in the previous quarter. Meanwhile, the percentage of advisors with no crypto-owning clients has dropped to just 3%, compared to 8% in Q2.

“These findings underscore a clear shift in how financial advisors view digital assets as part of their clients’ portfolios,” said Ric Edelman, founder of DACFP.

“More advisors are recommending crypto, and they’re increasing recommended allocations. Both are signs of growing confidence in this asset class.”

Among the surveyed advisors, 70% have recommended cryptocurrency investments to at least 10% of their clients. The most common suggested allocation is 2%, preferred by 26% of advisors, followed closely by a 5% allocation, which 22% recommend.

BULLISH results from a recent institutional survey

According to Sygnum, 62% of institutional investors want to gain exposure to crypto & 57% intend to increase their allocation. pic.twitter.com/fID6Jg8XWa

— Coin Bureau (@coinbureau) November 14, 2024

The survey also highlights forward-looking trends of the advisors who have yet to recommend crypto, 56% plan to do so in the near future, with half intending to start within six months.

Among these, 30% plan to recommend a 5% allocation, while 22% favor a 2% allocation.

“Digital assets are becoming an integral part of what we call the ‘portfolios of the future,’” said Sandy Kaul, head of Franklin Innovation Research Strategies and Technology at Franklin Templeton.

“As clients increasingly add exposure to this asset class, advisors must leverage educational resources to stay informed about the evolving market.”

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As Crypto Adoption Grows Bitcoin Hits New Record High

This growing confidence in crypto coincides with significant market activity. Bitcoin, the leading cryptocurrency, recently reached a record high of $94,000, fueled by increased adoption and shifting political dynamics.

Donald Trump’s recent electoral victory has added momentum to the crypto market, with many speculating that Bitcoin’s next milestone of $100,000 could be within reach.

The political landscape is also influencing sentiment. Trump’s vocal opposition to SEC Chair Gary Gensler has sparked speculation about changes at the regulatory level.

Trump has pledged to dismiss Gensler on “day one” of his presidency, a move that has fueled optimism among crypto advocates. Rumors suggest Gensler might step down before the end of the year.

According to a report by venture capital giant Andreessen Horowitz, cryptocurrency usage has soared to unprecedented levels and shows no signs of slowing down.

The report estimates that global cryptocurrency owners have hit a new high of 617 million this year. Moreover, 30 to 60 million active users have been engaging with crypto regularly.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

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