The Digital Assets Council of Financial Professionals and Franklin Templeton Digital Assets recently released a new survey that shows how clients and financial advisors are increasingly embracing cryptocurrencies.
Interestingly, more clients now own cryptocurrencies, and advisors are recommending them at higher rates. The Q3 2024 Advisor Pulse Survey reveals that advisors are allocating more funds to cryptocurrencies, reflecting their growing confidence in this asset class for portfolio diversification.
The survey polled 619 financial professionals, 61% of whom primarily served clients with assets between $500,000 and $3.5 million. Meanwhile, 11% focused on clients with assets exceeding $3.5 million.
According to the survey, 19% of financial advisors said that more than half of their clients are invested in digital assets, an increase of 4% compared to the beginning of this year. In addition, 36% of these advisors noted that between 10% and 49% of their clients hold cryptocurrency.
The percentage of advisors reporting no cryptocurrency ownership among their clients fell below 3%, a significant decrease from the second quarter of 2024.
A significant 70% of financial advisors advised at least 10% of their client base to invest in cryptocurrencies. In addition, more than a third of these professionals, specifically 36%, went so far as to recommend cryptocurrencies to at least 50% of their clients.
Advisors favor small allocations, but show growing confidence in larger investments
Financial advisors who include cryptocurrency in their recommendations most often suggest an investment of 2%, with some 26% supporting this figure. In addition, 22% push for an allocation of 5%. There is a noticeable trend in which these advisors are increasingly advising larger investments in cryptocurrencies than in previous surveys.
Most advisors, 56% to be exact, who are not yet suggesting cryptocurrencies to their clients are planning to start. Exactly 28% of them are expected to start within the next six months, and 23% will follow suit within the next year.
Most advisors who are considering including cryptocurrency in their portfolios are inclined to recommend an allocation range of 1% to 5%, with 85% preferring this range. On the other hand, 13% are open to suggesting a more substantial investment, aiming for 10% or more.
Another report published earlier this month indicated that 57% of institutional and professional investors want to expand their long-term investments in cryptocurrencies. Moreover, 65% of these investors are optimistic about the future, with 63% planning to increase their investments in cryptocurrencies in the next three to six months.
The report predicts that investor sentiment could quickly become more optimistic in 2025. This outlook comes as Bitcoin reached a new peak above $94,000 for the first time, influenced by both Donald Trump’ s supportive attitude toward cryptocurrencies and options trading in the Bitcoin ETF market.
