Financial Advisors Embracing Crypto Investments in 2025
According to a recent report by Bitwise and VettaFi, financial advisors are increasingly open to investing in cryptocurrency, with 56% showing interest in 2025. The 2024 US election results played a significant role in shifting sentiment towards crypto investments.
Key Findings from the Report
- 96% of financial advisors received client inquiries about crypto in 2024, the highest on record.
- 22% of advisors allocated crypto in client portfolios in 2024, doubling from the previous year.
- Institutional investors and Registered Investment Advisors were the most likely to allocate crypto, followed by wirehouse representatives.
- 71% of advisors’ clients independently invested in crypto in 2024, presenting an opportunity for advisors to integrate crypto into wealth plans.
Political Support Driving Crypto Investments
The report highlighted the impact of the 2024 US elections on the crypto industry, with President-elect Donald Trump’s pro-crypto stance and strategic Bitcoin reserve proposal boosting optimism. Pro-crypto candidates winning key seats in Congress also contributed to a favorable political environment for crypto investments.
Potential Barriers to Advisor Adoption
- Volatility and regulatory uncertainty remain top concerns for advisors, with 47% and 50% citing them as barriers, respectively.
- 65% of advisors face challenges in allocating crypto in client accounts due to regulatory restrictions.
- Valuation concerns have decreased, with only 31% of advisors expressing worries about valuing crypto assets in 2024.
Changing Investment Strategies
Advisors are exploring different crypto investment vehicles, with crypto equity ETFs being the most popular choice. Interest in spot crypto ETFs and diversified crypto index funds has also surged, reflecting a preference for professionally managed options.
Future Outlook for Bitcoin
- 67% of advisors predict an increase in Bitcoin’s price over the next year, with 40% expecting it to trade between $250,000 and $1 million by 2030.
- 83% of respondents believe Bitcoin will surpass Ethereum in market cap within five years, indicating a strong conviction in Bitcoin’s long-term potential.
