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A recent survey conducted by the Digital Assets Council of Financial Professionals (DACFP) and Franklin Templeton Digital Assets reveals a significant shift in the attitudes of financial advisors and their clients toward cryptocurrencies. The Q3 2024 Advisor Pulse Survey highlights increasing crypto adoption among clients and advisors’ growing confidence in recommending digital assets for portfolio diversification.
Crypto Adoption on the Rise Among Clients
The survey, which included 619 financial professionals, found that 19% of advisors now report over half their clients own cryptocurrencies—a 4% increase from earlier this year. Furthermore, 36% of advisors noted that 10% to 49% of their clients are crypto investors.
The number of advisors reporting no crypto ownership among their clients has dropped significantly, falling below 3%, compared to earlier in 2024.
Advisors Increasingly Recommending Crypto Investments
The study reveals that 70% of financial advisors have advised at least 10% of their clients to invest in cryptocurrencies. Among these, 36% have recommended crypto to at least half their client base.
While small allocations remain the most common, advisors are becoming more confident in suggesting larger investments.
- 26% of advisors recommend a 2% allocation to crypto.
- 22% endorse a 5% allocation.
- A growing number are suggesting allocations exceeding 10%, indicating rising trust in the asset class.
Advisors who have yet to recommend crypto are also showing a willingness to embrace it: 56% plan to include cryptocurrency in their advice soon, with 28% aiming to start within six months and another 23% within the next year.
Institutional Sentiment Turns Bullish Amid Bitcoin’s $94K Milestone
The positive sentiment isn’t limited to retail advisors. A separate report shows that 57% of institutional investors are expanding their long-term crypto holdings, with 65% optimistic about the market’s future.
This bullish outlook is fueled by Bitcoin reaching a record high of $94,000, driven by factors such as:
- The launch of options trading on a spot Bitcoin ETF.
- Supportive crypto policies from figures like Donald Trump.
Why Crypto Diversification Matters
With macroeconomic uncertainties and rising inflation, financial advisors increasingly view crypto as a viable asset for diversification. The survey found that 85% of advisors planning to recommend crypto prefer an allocation between 1% and 5%, while 13% are open to recommending larger investments of 10% or more.
Key Takeaways for Investors
The shift in financial advisors’ attitudes reflects the growing legitimacy of cryptocurrencies in traditional finance. As adoption rates climb and confidence grows, crypto is becoming a mainstream consideration for portfolio diversification.
For the latest insights and expert analysis on cryptocurrency and blockchain, visit CentBit.Online, your trusted resource in Bangladesh for digital asset news.
