Would Major Funds invest in a Cryptocurrency ETF?
As reported by GlobeNewswire, a recent Nasdaq survey of 500 financial advisers who are already or are considering allocating to cryptocurrencies found that 72 percent of advisors would be more than inclined to invest client assets in bitcoin if a spot Cryptocurrency ETF product were to be established in the United States.
One-hundred-and-eighth percent of advisors who have already invested in cryptocurrencies expect to increase their allocations over the next 12 months, while zero percent expect to decrease their allocations.
The group of advisers together controls $26 trillion in assets, according to reports.
50 percent of the same group is presently using Bitcoin futures exchange-traded funds, and another 28 percent intends to start using them over the next 12 months, according to the study results.
What Percentage Should Be Invested In Crypto ETFs according to the FAs?
Consultants who are currently investing in cryptocurrencies or who are thinking of investing in cryptocurrency have said that their ideal cryptocurrency allocation for a client is about 6 percent of the client’s entire portfolio on average, according to the survey.
When it comes to broad exposure, 69 percent of the advisors questioned would explore using an index fund, which was followed by sector-specific index funds (57 percent), actively managed funds (52 percent), individual digital assets (40 percent), and high-yield funds (31 percent).
The vast majority of advisors we surveyed either plan to begin allocating to crypto or increase their existing allocation to crypto. As demand continues to surge, advisors will be looking for an institutional solution to the crypto question that now dominates client conversations.
Crypto inflows through advisor channels show no signs of stopping, even as advisors grapple with compliance considerations and look for guidance from educational materials from other industry participants, including asset managers and index providers.
Nasdaq, Head of Digital Asset Index Research, Jake Rapaport
Nearly 10% of advisors say they are extremely informed about cryptocurrency, and another 9% say they are very confident in their ability to advise consumers on digital assets.
Nearly every single adviser polled (98 percent) indicated a desire to learn more about bitcoin and digital assets.
