Crypto Allocation Doubles Among Financial Advisors Amid Bitcoin ETF Boom
In 2024, the number of financial advisors incorporating cryptocurrencies into client portfolios doubled, reflecting a surge in interest fueled by Bitcoin’s record-breaking performance and the growing adoption of spot Bitcoin ETFs. According to a survey by Bitwise Asset Management and analytics firm VettaFi, 22% of financial advisors now allocate crypto to their clients, up from 11% in 2023.
Crypto’s Rising Popularity Among Advisors
A recent survey revealed a transformative year for cryptocurrencies in 2024, with 96% of financial advisors reporting client interest in crypto investments and 56% expressing greater willingness to allocate to digital assets following the November U.S. election. The year marked a turning point, as Bitcoin soared 123% to a record $108,000, fueled by the launch of spot Bitcoin ETFs that amassed over $35 billion in assets. Ethereum and Solana also experienced substantial growth, gaining 45% and 85%, respectively, underscoring the accelerating adoption of cryptocurrencies in mainstream finance.
Bitcoin ETFs Transform the Market
The launch of spot Bitcoin ETFs by major financial firms like BlackRock and Fidelity marked a pivotal moment for digital assets in 2024, providing investors with a regulated, accessible avenue to invest in Bitcoin and driving increased trading volumes and participation. This growth was fueled by institutional endorsement, which legitimized Bitcoin for mainstream investors, and political support, with President-elect Donald Trump’s pro-Bitcoin stance and a Republican-controlled Congress boosting optimism for reduced regulatory hurdles and broader adoption.
Advisors’ Growing Confidence in Crypto
Bitwise’s survey highlighted that a favorable political climate has significantly bolstered advisors’ interest in cryptocurrency investments. Over half (56%) of advisors cited President-elect Trump’s election as a decisive factor in exploring crypto allocations, driven by expectations of a more supportive regulatory framework under the new administration. According to Bitwise, these findings underscore the profound impact of political and regulatory developments on shaping investment strategies.
Crypto Adoption: A Broader Trend
The Bitwise survey analyzed responses from 430 financial advisors, reflecting a growing trend of integrating digital assets into traditional investment portfolios. As Bitwise’s spot Bitcoin ETF (ticker symbol: BITB) amassed $4.4 billion in assets under management, it became clear that crypto is moving from a niche investment to a mainstream financial instrument.
Conclusion: Crypto at the Cusp of Greater Adoption
With Bitcoin ETFs setting records and political winds shifting in favor of digital assets, 2024 has solidified crypto’s place in the financial mainstream. The doubling of crypto allocations among advisors marks a significant milestone, underscoring the increasing relevance of digital assets in investment strategies.
As regulatory clarity improves and institutional adoption continues, cryptocurrencies could see even broader acceptance among financial professionals and their clients, paving the way for exponential growth in the years ahead.