US Financial Advisors Doubtful About Cryptocurrency Investments

Last modified: January 15, 2020

On Tuesday, a survey about the attitude of financial experts towards crypto investments was released. The results were quite surprising — over 50% of financial advisors said they were doubtful about investing in crypto due to regulatory uncertainty.

The survey, conducted by Bitwise back in December, asked several questions to more than 400 participants — all about cryptocurrency investments. Questions mainly focused on the outlook for the crypto market, how their clients approach crypto, and the motivations for them to invest more in the market. The bottom line: advisors are hopeful about the future of bitcoin but uncertain of investing in it. 

To be specific, Bitwise’s survey revealed that only 6% of the respondents currently invest their clients’ funds in cryptocurrency. The remaining portion of the pie will continue to avoid crypto this year with 55% saying they would “probably” or “definitely” not make investments.

According to Matt Hougan, the global head of research for Bitwise, advisors were intrigued by the crypto’s tendency to deliver uncorrelated returns. However, the major reason as to why crypto investments aren’t that booming is the regulatory uncertainty. 56% of advisors said that they were spooked by regulatory concerns, holding them back to completely embrace crypto assets.

Undoubtedly, the respondents are paying attention to the regulatory landscape since last year. In 2019, 42% said that regulation was their major concern; this year, the majority of advisors (58%) still consider regulation as the main deciding factor whether to invest in crypto or not. 

On the bright side, both advisors and their clients have a positive attitude towards the future of crypto. Hougan said that last year, people weren’t sure if crypto would survive; now, they are showing renewed confidence for the market’s future. By 2025, 64% of the surveyed advisors project that crypto would add more value, whereas 8% think that the market would go down by the year’s end.

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