Financial Advisors still Hot for Crypto Investing 

Study shows Financial Advisors still excited about the long term potential of crypto, despite deep declines at the end of the year

According to an article in Investment News this week, despite the dramatic drop in crypto currency prices in the past year including a 65% drop for bitcoin, financial advisors are still excited about the long-term potential of digital currency.  

The article cited a report released last week from Bitwise and VettaFi indicating that 60% of financial advisors are long-term bullish on crypto investing. Surprising because, the findings came prior to the 40% bitcoin jump in the past four weeks. 

According to the article, if advisors are starting to show a new interest in crypto it may be to try and keep up with their clients.  

The survey reported: 

•  14% of advisors say all of their clients are investing in crypto, which compares to 8% last year and 6% two years ago. 
• 45% percent of advisors said some of their clients are investing in crypto, which compares to 62% last year and 34% two years ago. 
• 37% of advisors said they are investing in crypto in their personal accounts, which compares to 47% last year and 24% two years ago. 
• 25% said they use ETFs that invest in crypto companies to gain exposure for their clients. The second most popular way of gaining exposure, at 17%, is directly investing in various cryptocurrencies. 
• 65% of advisors listed regulatory issues as a top concern for their reasons to not invest in crypto, followed by price volatility at 51%. 

Exchange-traded funds have become the most popular avenue, even though U.S. regulators have not yet permitted funds that invest directly in the digital currency, according to Investment News. 

Since its inception in 2010, the price of bitcoin has reportedlt suffered three negative years. But there have been big declines, including a 58% decline in 2014, a 73% decline in 2018, and a 65% decline in 2022. 

The remaining 11 positive years have ranged from 35% in 2015 to 9,900% in 2010. 

Last week, we reported that the Securities and Exchange Commission (SEC) is currently examining the activities of registered investment advisers over whether they’re following applicable guidelines around the custody of customer digital assets. See: SEC Investigating RIAs over Crypto-Asset Custody 

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The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. For more information, please visit our website, www.whitesecuritieslaw.com.