Cryptocurrency News

Big increase in financial advisors adding crypto assets to client portfolios

According to a survey, financial advisors are recommending investments in bitcoin and crypto assets to their clients more than ever before.

A report by the Financial Planning Association released on June 1 takes a look at the changing attitudes towards crypto assets. ‘Trends in 2021 Investment SurveyTurns out that more than ever before, financial advisors are advising their clients to have some crypto in their portfolios.

The survey was conducted in March and received 529 online responses from professional financial advisors who provide investment advice and recommendations to clients.

It states that 14% Financial advisors have already added crypto assets For your portfolio of clients or are recommending it to them. More are planning to do so next year.

“More than a quarter (26 percent) of advisors in the 2021 survey indicated that they plan to increase their use/recommendation of cryptocurrencies over the next 12 months.”

The survey revealed that this figure is significantly higher than the previous year when less than 1% of advisors were recommending exposure to cryptocurrencies.

Furthermore, 49% of finance professionals indicated that, over the past six months, clients have asked them about investing in cryptocurrencies, a figure that nearly tripled from just 17% in 2020.

Less than half or 48% of financial advisors claim to have read the topical news on cryptocurrencies and have some spontaneous conversation about them, with a third of advisors actively educating themselves on digital assets.

The survey found that customers are less concerned about market volatility this year than last year. More than half, or 52%, of financial advisors said their clients inquired about market volatility in the past six months, compared to 76% for the previous year.

What investors can be attracted to crypto assets hedge against inflation Which has intensified during the pandemic and the ongoing fiscal stimulus packages. Inflation in the US is at a 13-year high.

In early May, Cointelegraph reported that Financial advisors are making an institutional push towards crypto asset adoption.

Grayscale CEO Michael Sonnenshein told Cointelegraph that, “customer curiosity and demand are driving financial advisors’ interest in crypto.” Their comments were drawn from a survey conducted by the investment firm showing that more than half of advisors are receiving questions about cryptocurrencies from their clients.

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