Investment clients continue to ask their financial advisors about crypto assets despite a year marked by price drops, according to a survey jointly conducted by Bitwise Asset Management and ETF Trends.
The survey also found that financial advisors are taking note of their clients’ interest by starting or continuing to add crypto assets to clients’ investment portfolios in 2019.
The December survey canvassed 150 independent registered investment advisors (RIAs), independent broker-dealer representatives, financial planners and wirehouse representatives.
The survey found that 79 percent of respondents answered client questions about crypto assets last year. The survey also found that 22 percent of respondents expect to increase or begin crypto allocations this year.
Despite client interest in crypto assets, only 9 percent of advisors said they currently manage an allocation to crypto in clients’ portfolios.
A majority of respondents, 55 percent, expect the price of bitcoin to appreciate over the next five years.
Matt Hougan, global head of research for Bitwise Asset Management, said that after a year in which the Bitwise 10 Large Cap Crypto Index fell 78 percent, the survey results showed that client interest in crypto investing through their financial advisors had not waned, but instead grew.
Tom Lydon, founder and editor of ETF Trends, said that the survey indicated that financial advisors needed to have good answers and insights when it comes to investing in crypto so they can better serve the investment needs of their clients.
Bitwise Asset Management, headquartered in San Francisco, is creator of the world’s first crypto asset index fund in 2017. The firm is the leading provider of index and beta funds for the crypto asset space.