Most US Financial Advisors Want a Crypto ETF, Survey Finds

Approximately 72% of advisors would be more likely to invest client assets in crypto if a spot ETF product were offered in the United States, according to a Nasdaq survey of 500 financial advisors.

Over the next 12 months, 86% of advisors who are already investing in crypto plan to increase allocations, while 0% plan to decrease. In the same group, 50% already use Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term futures ETFs, and 28% will do so in the next 12 months.

Approximately 6% of a client’s total portfolio is optimal for advisors currently investing in crypto or considering doing so. In addition, the survey found that 69% of advisors would consider using index funds as a broad asset class, followed by sector-specific index funds (57%), actively managed funds (52%), digital assets (40%) and high-yield funds (31%).

“Over the last decade, financial advisors have been focused on shifting assets into index funds. As they incorporate digital assets into their investment strategies, they are expressing strong interest in a similar vehicle that can offer broad asset class exposure for their clients. The vast majority of advisors we surveyed either plan to begin allocating to crypto or increase their existing allocation to crypto. As demand continues to surge, advisors will be looking for an institutional solution to the crypto question that now dominates client conversations,” Jake Rapaport, the Head of Digital Asset Index Research at Nasdaq, commented.

The surveyed advisors were not confident that a crypto spot ETF would be approved in 2022, despite strong interest in passive crypto and passive crypto ETFs: a mere 38% of respondents think it is likely, 31% do not, 24% are neither sure nor certain and 7% are unsure.

RIAs and Cryptos

In the survey, registered investment advisors (RIAs) adopt cryptocurrency at a rate of 34%, while independent broker-dealers (IBDs) adopt crypto at a rate of 19%, and wirehouse advisors at a rate of 17%. In addition, about half of financial advisors (49%) say that compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term rules and restrictions keep them from recommending crypto investments, compared with 78% of advisors from all other sources.

Among advisors, 10% report being very knowledgeable about crypto, and 9% have great confidence in their ability to advise clients on it. Moreover, nearly all advisors (98%) are interested in learning more about crypto and digital assets.

According to respondents, about 7% consider ESG when determining a client’s digital asset strategy very important.