According to a recent study of 500 financial advisors conducted by Nasdaq, 86% of the surveyed advisers, who handle nearly $26 trillion in total wealth, also aim to invest more in crypto this year, indicating that institutional adoption is projected to expand in the near future.
Those who have already invested in cryptocurrencies on behalf of their clients have no plans to do so in the coming year. Still, the polled advisers aren’t quite ready to leap headfirst into cryptocurrencies; their optimum allocation is presently at a modest 6%.
Furthermore, the survey excludes financial experts who are still wary of cryptocurrencies, making it less trustworthy. The vast majority of respondents (72 percent) would prefer to invest in cryptocurrencies through a spot-based exchange-traded fund in the United States, indicating strong demand for an unreleased product.
Last October, the Securities and Market Commission (SEC) approved a Bitcoin futures exchange, but it has denied several attempts to launch a spot-based ETF. More than half of the respondents get their crypto exposure through a futures-based fund. Almost a third of them also intend to invest in such an investment vehicle in the future.
Despite the early enthusiasm surrounding the launch of a futures-based ETF, investors soon became disappointed with the product due to diminished exposure, fees, and price divergence between the underlying asset and paper futures. As a result, many people are calling for an ETF based on spot pricing.
Sixty-nine percent of advisors support using index funds to acquire exposure to cryptocurrency.
Read more: Majority of financial advisers discuss cryptocurrency with their clients: Study
