New data reveals what it would take for financial advisors in the US to go ahead with investing in the crypto space.
According to a recent Nasdaq survey of 500 financial advisors who are considering investing in crypto, 72% would be willing to invest their clients’ assets in cryptocurrencies if regulators approve a spot exchange-traded fund (ETF).
The study finds that the overwhelming majority of securities brokers plan to increase their exposure to crypto assets in the next 12 months, while none of them plan to decrease it. It also determined that 86% of total respondents plan to increase their crypto allocations over the next 12 months while 0% plan to decrease.
Furthermore, 50% say they are already using Bitcoin (BTC) futures ETFs while 28% say they plan to start trading them within a year.
As stated by Jake Rapaport, head of digital asset index research at Nasdaq,
“Over the last decade, financial advisors have been focused on shifting assets into index funds. As they incorporate digital assets into their investment strategies, they are expressing strong interest in a similar vehicle that can offer broad asset class exposure for their clients,
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.”
However, despite talk of ETFs, most of those surveyed don’t believe the U.S. Securities and Exchange Commission (SEC) will approve one in 2022.
The survey reveals that only 38% foresee the approval of a spot ETF this year, while 31% find it unlikely and 24% find it neither likely nor unlikely.
The financial advisors also note that an ideal crypto allocation for their clients would be 6% of their portfolios.
The SEC could potentially approve a spot market Bitcoin ETF next year, according to a previous report by Bloomberg analysts.
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