Significant 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 clients more than ever.

A report issued by the Financial Planning Association on June 1 examined the changes in people’s attitudes towards crypto assets. This ‘2021 Investment Trend Survey‘It was revealed that more financial advisors than ever before are recommending that their clients include some cryptocurrencies in their portfolios.

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

It states that 14% of Financial advisor has added crypto assets To their client’s portfolio or recommend it to them. More people plan to do this next year.

“More than a quarter (26%) of consultants stated in the 2021 survey that they plan to increase the use/recommendation of cryptocurrencies in the next 12 months.”

The survey showed that this number has risen sharply from the previous year, when less than 1% of consultants recommended exposure to cryptocurrencies.

In addition, 49% of financial professionals said that in the past six months, customers have asked if they invest in cryptocurrencies, and this number has almost tripled from 17% in 2020.

Slightly less than half, or 48%, of financial advisors claim to read news reports about cryptocurrencies occasionally and feel comfortable talking about them, and one-third of advisors are actively educating on digital assets.

The survey found that compared with last year, customers seem to be less worried about market fluctuations this year. More than half or 52% of financial advisers said that their clients asked about market fluctuations in the past six months, compared with 76% last year.

Investors may be used by crypto assets as Hedge against inflation This situation intensified during the pandemic and the ongoing fiscal stimulus plan. The inflation rate in the United States is hovering near a 13-year high.

In early May, Cointelegraph reported that Financial advisors have been leading institutions to promote the adoption of crypto assets.

Grayscale CEO Michael Sonnenshein told Cointelegraph, “Customers’ curiosity and needs are driving financial advisors’ interest in cryptocurrencies.” His observation comes from a survey commissioned by investment companies that showed that more than half of consultants received clients On the issue of cryptocurrency.



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