A survey conducted by Bitwise Asset Management shows that financial advisors receive questions about cryptocurrency investing from 90% of their clients.
Cryptocurrencies are considered one of the most attractive investment alternatives for investors, despite the high risk they represent, mainly due to the volatility of their prices in the market.
Among the most in-demand cryptocurrencies are Bitcoin and Ethereum, the two most capitalized cryptocurrencies. However, interest in other cryptoassets as investment vehicles continues to grow as the cryptocurrency ecosystem develops and expands.
This is demonstrated by the results from a survey conducted by cryptocurrency index fund manager Bitwise Asset Management in the United States.
The firm surveyed 491 US financial advisors to find out how often their clients ask for advice on investing in cryptocurrencies. Surprisingly, the results of the survey show that 90% of US investors ask their financial advisors about investing in crypto assets.
Based on its results, Bitwise Asset Management highlighted that investors remain optimistic about cryptocurrencies, despite the sharp correction that the crypto market suffered in 2022, which led the price of Bitcoin to trade above $15.800 in November. The price of other major cryptocurrencies on the market also fell sharply, trading at a drop of 60%, on average.
The survey of financial advisors was conducted in collaboration with the ETF platform, Vettafi.
It may interest you: Half of Americans don't know what an NFT is
Bullish sentiment remains in cryptocurrencies
According to Bitwise Asset, 60% of respondents believe that the price of Bitcoin on the market will be higher in the next 5 years, although the short-term outlook points to a possible correction.
The company also revealed that the allocation of cryptocurrencies in the investment accounts of US clients has increased relative to the percentage dedicated to these digital assets between 2020 and 2021. Currently, 15% of financial advisors hold cryptocurrencies in their investment portfolios; between 2020 and 2021 this same percentage was 6% and 9%, respectively.
Finally, the management company highlighted that cryptocurrencies represent a great business opportunity for investors, so The dominant trend is that once investors have invested in cryptocurrencies, they will maintain their positions and even increase them in the future. “78% of financial advisors who currently have an allocation of cryptocurrencies in client accounts plan to maintain or increase that exposure in 2023,” the report said.
Source: Bitwise Asset
Matt Hougan, chief investment officer at Bitwise Asset Management, concluded that the survey is “a reminder that cryptocurrencies are one of the best business development opportunities in the financial advisor market.”
Investors in the Asian market are among the most interested in cryptocurrencies
In addition to US investors, wealthy investors from Hong Kong and Singapore are among those most interested in investing in Bitcoin and other cryptoassets.
Global professional services firm KPMG and digital asset allocation platform Aspen Digital also conducted a survey in the Asian market to find out about investor interest in cryptocurrencies in the region.
In their report “Investing in Digital Assets”, published in the fourth quarter of 2022, both companies reported that the 34% of the richest investors in Hong Kong and Singapore were willing to invest in cryptocurrenciesWhile 8% said they already owned or had some exposure to Bitcoin and other digital assets.
Source: KPMG
KPMG and Aspen Digital highlighted that Cryptocurrencies like Bitcoin have managed, since their creation, to generate higher returns than those accumulated by gold and stocks., which is why cryptoassets have become one of the most sought-after and interesting vehicles in investment portfolios.
“For the Asian private wealth management market, digital assets represent an emerging asset class with opportunities unmatched by other financial products,” said Aspen Digital co-founder and CEO Yang He, noting that investor interest in cryptocurrencies has grown exponentially and continuously over the past year and a half.
Continue reading: Why do high-net-worth investors prefer to invest directly in cryptocurrencies?
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
