Financial planners are warming up to cryptocurrencies.
Fourteen percent of advisors are currently using or recommending digital assets to clients, according to the latest
The trend looks like it will continue, with more than a quarter of advisors indicating they plan to increase their use and recommendation of cryptocurrencies over the next 12 months.
This year’s version of the survey was supported by Onramp Invest,
This may have inflated survey results, but there would have been a big jump regardless because of soaring prices in crypto markets over the last year, Ross says.
“Advisors are understanding now that this isn’t necessarily going away,” he adds, comparing cryptocurrency to previous disruptive forces like discount brokerages and robo advisors. “We’re not at the point of mass adoption yet, but we’ve reached mass acceptance.”
The uptick can be attributed to advisors receiving more questions from clients about crypto, according to the survey. Nearly half of advisors indicated that clients have asked about cryptocurrencies in the last six months, compared to 17% in 2020.
"Clearly interest in this asset class is growing rapidly and financial planners need to get up to speed so they can make educated decisions about recommending cryptocurrencies for some clients," says FPA president Skip Schweiss in an email to Financial Planning.
The annual survey asks advisors where they are investing today and where they plan to increase or decrease allocations over the next 12 months.
ETFs continue to be the preferred investment vehicle, with 64% of advisors currently using or recommending the funds. While that is down 21% from 2020, more than a third of advisors are planning to increase their use of ETFs in the next year.
Most advisors and their clients stayed away from the so-called meme-stock rally that took place earlier this year. Only 34% of clients bought shares of GameStop, while 20% of advisors bought shares for themselves.
