In a newly published report, Bitwise Asset Management outlines the changing attitude of advisors regarding cryptocurrency investments post-election. and VettaFi has revealed Following the recent election victory of Donald Trump, a slender majority of financial advisors are now contemplating a more significant involvement with digital currencies.
Advisors still show a strong preference for crypto-themed ETFs when considering investments in 2025.
Delving deeper, 56% of advisors indicated that the election results have positively influenced their openness to crypto investment strategies this year.
The optimism could be linked to Trump's favorable stance on blockchain technologies; he previously pledged to support the sector by crafting a supportive environment, advocating national Bitcoin reserves, and more.
The Trump Pump
According to Bitwise’s analysis, an increasing number of advisors are weaving crypto assets into their financial strategies, marking a significant rise from 2023 to 2024.
Interest levels among clients have soared, with 96% of advisors reporting an influx of questions about crypto last year; notably, 99% of those advisors already incorporating crypto continue to invest or plan to expand their investments throughout this year.
For advisors yet to venture into crypto on behalf of their clients, 19% are strongly considering it in 2025, reflecting a noticeable increase from only 8% the previous year.
Crypto Equity ETFs Remain Top Choice
The report highlights the ongoing trends in crypto ETFs, with advisors favoring them as the prime method for introducing crypto elements into portfolios by 2025.
In 2024, two groundbreaking events reshaped the cryptocurrency landscape: the launch of US spot Bitcoin ETFs in January and spot Ether ETFs in July, both attracting substantial investor interest and growing asset management figures.
Among leading funds, BlackRock's iShares Bitcoin Trust, or IBIT, stood out, eclipsing its gold-focused counterparts. As of early January, IBIT's Bitcoin holdings hit an impressive $52.5 billion.
The survey underlined that expertise is a key factor for advisors selecting Bitcoin ETFs, alongside the reputation and reporting capabilities of the issuer.
However, the challenge of access remains a hurdle for broader ETF adoption, with only 35% of advisors currently able to purchase cryptocurrencies for their clients.
While regulatory uncertainties continue to affect crypto adoption, advisors express a gradual decline in concern, potentially fueled by optimism over forthcoming regulatory clarity.
Buying On The Open Market
Many clients are independently engaging with crypto markets, with 71% of advisors noting that their clients are personally investing outside of traditional advisory frameworks.
All attention is now on Trump's upcoming inauguration in January, a pivotal moment anticipated to signal significant advancements for the US in the digital asset and blockchain arenas.
Bitcoin experienced a post-election boost, breaching the $100,000 mark last month. Still, the rally hit a pause as prices dipped below $93,000, supposedly due to a looming $6.5 billion Bitcoin sell-off by the US government.
On Wednesday, DB News reported that the Department of Justice received authorization to offload Bitcoin seized from the infamous Silk Road marketplace, though an official statement remains pending.
Industry analysts continue to foresee potential growth for Bitcoin under Trump's administration, with the proposed Bitcoin reserve inspiring US companies to adopt cryptocurrency as part of their strategic assets.
