Surge in Crypto Interest Among Financial Advisors: Insights from the Bitwise-VettaFi 2025 Benchmark Survey
A recent report by Bitwise and VettaFi sheds light on the growing enthusiasm for cryptocurrency among financial advisors. In 2024, a remarkable 56% of advisors expressed a higher likelihood of investing in crypto compared to previous years, a trend influenced substantially by the results of the 2024 U.S. elections. The political climate is shifting, and this change is reverberating through the financial advisory landscape.
Record Client Inquiry Levels
The enthusiasm for cryptocurrencies isn’t just coming from advisors; the rising prices and clearer regulatory frameworks have ramped up client interest to unprecedented levels. In 2024, 96% of advisors reported that they fielded inquiries about crypto, a significant increase from 88% in 2023. This indicates that the appetite for digital assets is not only growing but is becoming a crucial part of financial discussions between clients and their advisors.
Growing Allocation of Crypto in Client Portfolios
As advisors respond to this demand, the allocation of cryptocurrency in client portfolios is experiencing a notable uptick. The proportion of advisors who allocated crypto has doubled, rising to 22% in 2024 from just 11% the previous year. It’s particularly interesting to observe that institutional investors (30%) and Registered Investment Advisors (RIAs) (28%) are leading the charge, followed closely by wirehouse representatives (24%).
Moreover, clients are increasingly taking matters into their own hands, with 71% now investing in crypto independently of their advisors, up from 59% in 2023. These "held-away" assets present an expanding opportunity for advisors to incorporate crypto into broader wealth management strategies, ensuring clients remain well-informed and guided in their investments.
Advisors Planning for the Future
As the industry continues to gain momentum, even those advisors who have not yet allocated crypto are showing a willingness to embrace it. The report indicates that 19% of advisors plan to invest in cryptocurrencies by 2025, a significant rise from 8% the year before. In contrast, a striking 99% of advisors currently investing in crypto have indicated intentions to maintain or even increase their exposure moving forward.
The Role of Politics in Shaping Crypto Sentiment
The political landscape of 2024 has proven to be a game-changer for the crypto industry. President-elect Donald Trump’s endorsement of digital assets and a proposed Bitcoin reserve strategy have injected optimism into the market. Alongside this, pro-crypto candidates making significant electoral gains in Congress suggest a favorable political environment for the growth of cryptocurrencies.
Particularly noteworthy is the rising speculation regarding a proposal by Senator Cynthia Lummis (R-WY), advocating for the U.S. to acquire 1 million Bitcoins over five years. The report shows that 45% of advisors believe this ambitious plan may come to fruition, and there’s speculation that U.S. involvement in Bitcoin reserves could spur a trend among other nations, with Brazil and Poland already exploring similar legislation.
Challenges Persisting in the Crypto Landscape
Despite this growing enthusiasm, the landscape is not without its challenges. Volatility (47%) and regulatory uncertainty (50%) continue to reign as the primary barriers to advisor adoption of cryptocurrencies. However, there is a silver lining; regulatory concerns have lessened compared to previous years, reflecting a more optimistic outlook as the new administration settles in.
Many advisors (65%) remain unsure or are unable to allocate crypto in client accounts, which continues to be a significant hurdle. Encouragingly, confidence is growing among advisors to effectively value crypto assets, with only 31% citing valuation concerns in 2024, down from 42% the previous year. Likewise, fears surrounding custody issues and hacks have subsided, from 38% in 2022 to 24% in 2024.
Evolving Investment Strategies
The report also highlights a shift in the types of investment vehicles favored by advisors. Crypto equity ETFs (25%) have emerged as the most popular option, providing a familiar entry point for those cautious about taking direct exposure to cryptocurrencies. Interest in spot crypto ETFs (22%) and diversified crypto index funds (19%) is on the rise, reflecting a preference for professionally managed investment alternatives.
Advisors are not only becoming more pragmatic in their strategies but are also exploring innovative methodologies. Thematic strategies (26%) and buffered strategies (24%) are gaining traction, as they aim to mitigate the inherent volatility associated with cryptocurrencies while seeking to provide differentiated returns.
Future Price Predictions and Market Sentiment
A growing number of advisors (67%) now anticipate that Bitcoin’s price will appreciate over the following year, a significant increase from 52% in 2023. Forward-looking projections are equally bold; by 2030, 40% expect Bitcoin to trade between $250,000 and $1 million, while 10% believe it could even surpass the latter figure.
There is also a clear conviction regarding Bitcoin’s long-term potential. An overwhelming 83% of respondents believe that Bitcoin will attain a greater market cap than Ethereum within the next five years, underscoring the growing optimism surrounding the leading cryptocurrency.
The insights from this report illustrate a shifting dynamic in the financial advisory sector toward cryptocurrencies. As political landscapes evolve and investor sentiment strengthens, financial advisors find themselves at a pivotal moment, poised to adapt to a rapidly changing environment driven by digital assets.
