Tue, 19 March 2024 | advice crypto
Nearly three in five (59%) financial advisors say they recommend that clients allocate a portion of their assets to crypto, according to a December 2023 survey conducted by the Digital Assets Council of Financial Professionals and sponsored by Franklin Templeton Digital Assets.
"For more than a decade, financial advisors have largely been omitting bitcoin and other digital assets from their portfolio recommendations. That has now changed, and based on our research, we expect independent RIAs to move $150 billion of client assets into spot bitcoin ETFs over the next two years," said DACFP Founder Ric Edelman, CBDA, author of the #1 Amazon best-seller, The Truth About Crypto. "It is essential that all advisors increase their knowledge of this new asset class so they can properly serve their clients."
Among advisors who recommend an allocation to crypto, 7% have suggested it to all their clients and another 29% have recommended it to at least half. Overall, two-thirds of advisors who recommend crypto to clients (67%) recommend allocations of 1% to 3% of assets.
"Driving awareness and education around this asset class is critical for advisors and investors, and we're very pleased to have worked alongside DACFP in furnishing this survey," said Sandy Kaul, Head of Digital Asset & Industry Advisory Services at Franklin Templeton. "We remain in the early stages of adoption, and it's encouraging to see the robust interest from advisors seeking to allocate to digital assets."
Among advisors who have not been recommending crypto, two in five (41%) expressed that they intend to do so at some point in the future.
Survey respondents consisted of financial advisors from independent RIA firms, regional and independent broker/dealers, and major wirehouses. They primarily serve high-net-worth clients.