- The Bitwise / ETF Trends 2020 Benchmark Survey of Financial Advisor Attitudes toward Cryptoassets.
- This report focuses on finding how the crypto asset market would behave in the upcoming decade.
- A significant increase in the number of advisors allocating to crypto in their client portfolios is expected to more than double in 2020, from 6% to 13%.
Bitwise, the leading provider of the index and beta crypto funds in collaboration with ETF Trends, a leading provider of news and analysis in the ETF space organized and conducted The Bitwise / ETF Trends 2020 Benchmark Survey of Financial Advisor Attitudes toward Cryptoassets.
This report focuses on finding how the crypto asset market would behave in the upcoming decade through its benchmarking on how high-end financial advisors are now thinking about crypto after the recent developments of 2019. This would also include whether and how they are allocating to crypto in client portfolios.
The major take away from the report included-
A significant increase in the number of advisors allocating to crypto in their client portfolios is expected to more than double in 2020, from 6% to 13%. The leading motivation for advisors for including crypto in portfolios continued to be the low or uncorrelated returns with other assets which were highlighted this year by the 54% of advisors completing the survey which rose from 47% last year. Other key influencers would be the crypto’s high potential returns which stood at 30%, the client demand for access to crypto at 26% and the willingness or desire to win new business which was calculated to be at 23%.
The client’s interest in cryptoassets too saw a positive outcome with 76% of all financial advisors report receiving questions from clients on crypto in 2019 marking up to its gaining customer trust. The client behavior aspect too saw a great response with 72% of advisors thinking that the clients may be investing in crypto on their own, outside of their particular advisory relationship and showing them having gained a good amount of knowledge about the product.
The price expectations of crypto assets were also seen with a very optimistic approach with 64% of advisors expecting bitcoin price to increase over the next five years, up from 55% of advisors in last year’s survey. Also, 35% of advisors are expecting the price of bitcoin to at least double by 2024. While, the fraction of advisors expecting bitcoin’s price to fall to zero decreased sharply this year, from 14% to 8%, which would remarkably affect its buyer and overall market perception.
The previous decade did set up Cryptocurrencies such as Bitcoin for the bigger stage with Bitcoin and other crypto-assets surging onto the national limelight in 2017, boosted by a spectacular price rise enraging cautions of a repeat of the “tulip bubble.” Then the subsequent bear market in 2018 started to raise questions on whether the crypto empire would survive the long term or perish in the coming years.
While finally, 2019 set the base for crypto-industry with Prices recovering sharply, bitcoin appraising more than 90% and major institutions like Fidelity, Facebook and the Intercontinental Exchange entering the crypto market boosting its market equity and word of mouth publicity. Also, infrastructure and regulation came into place while the large institutional investors began to for the first time, start making their significant allocations.