U.S. Financial Advisors Increasing Crypto ETF Allocations Amid Growing Interest
At the Exchange conference in Las Vegas, a survey of U.S. financial advisors revealed strong interest in crypto exchange-traded funds (ETFs). Key findings include:
- 57% of advisors plan to increase allocations in crypto ETFs.
- 42% intend to maintain current positions.
- Only 1% aim to decrease their holdings.
The approval of spot bitcoin ETFs in January 2024 by the SEC has positively influenced institutional adoption, aided by a shift towards a more favorable regulatory environment since the Trump administration. Advisors are particularly interested in:
- Crypto equity ETFs investing in companies like Strategy and Tesla.
- Spot crypto ETFs including bitcoin and ether.
- Multi-token crypto asset funds.
About 22% of surveyed advisors show interest in spot crypto ETFs, while 19% favor multi-token funds. The market is seeing an influx of index-based ETFs and managed funds aimed at mitigating price volatility. Several issuers have also filed for new spot crypto ETFs, though pending SEC reviews remain.