Growing Confidence in Crypto Spurs Advisors to Increase Digital Asset Diversification

The Digital Assets Council of Financial Professionals and Franklin Templeton Digital Assets recently released a new survey, highlighting how clients and financial advisors are increasingly embracing crypto .

Notably, more clients now own crypto, and advisors are recommending it to 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 included 619 financial professionals, with 61% primarily serving clients who have assets between $500k and $3.5m. Meanwhile, 11% focus on clients with assets exceeding $3.5m.

19% of Advisors Report Over Half Their Clients Own Crypto, Marking a 4% Increase

According to the survey, 19% of financial advisors found that more than half of their clients are invested in digital assets, which is up by 4% from earlier this year. Also, 36% of these advisors noted that between 10% to 49% of their clients own cryptocurrency.

The percentage of advisors reporting no crypto ownership among their clients fell to under 3%, a significant decrease from the second quarter of 2024.

A significant 70% of financial advisors have advised at least 10% of their client base to invest in cryptocurrencies. Furthermore, over one-third of these professionals, specifically 36%, have gone as far as recommending crypto 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 commonly suggest a 2% investment, with about 26% of them endorsing this figure. Further, 22% push for a 5% allocation. There is a noticeable trend where these advisors are increasingly advising larger crypto investments than in past surveys.

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A majority of advisors, exactly 56%, who aren’t yet suggesting cryptocurrency to their clients, have plans to start. Specifically, 28% of them are set to begin within the next half year, and 23% will follow suit within the next year.

Most advisors who are contemplating the inclusion of cryptocurrency in their portfolios are leaning towards recommending an allocation range of 1% to 5%, with 85% of them preferring this bracket. On the other hand, 13% are open to suggesting a more substantial investment, aiming for 10% or above.

Crypto Sentiment Turns Bullish as Bitcoin Surpasses $94K Milestone

Another report published earlier this month indicated that 57% of institutional and professional investors are looking to expand their long-term investments in crypto .

Moreover, 65% of these investors are optimistic about the future, with 63% planning to ramp up their crypto investments in the forthcoming three to six months.

The report anticipates that sentiment among investors could rapidly become more optimistic in 2025. This outlook comes as Bitcoin climbed to a fresh high above $94,000 for the first time, influenced by both Donald Trump’s supportive stance on crypto and options trading on a spot Bitcoin ETF going live.