The fact that there is currently an exchange-traded fund (ETF) for Bitcoin futures has not deterred investors from taking a more active role in the prospect of seeing a crypto spot become available in the market.
As per a recent Nasdaq poll of 500 financial advisers who are now or are contemplating allocating to cryptocurrency, 72% of advisors would be more willing to invest client funds in crypto if a spot ETF product were launched in the United States, according to a GlobeNewswire report.
Within the group of advisors who are said to collectively control $26 trillion in assets, of those who have already invested in cryptocurrency, 86% anticipate raising their allocations over the next 12 months, while 0% intend to reduce their allocations.
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Of the same group, 50% are currently using Bitcoin futures ETFs, and another 28% want to begin using them over the next 12 months, per the survey.
Advisors recommend 6% of the client’s overall portfolio
Advisors who are presently investing in cryptocurrency or who are contemplating investing in cryptocurrency indicate that their ideal cryptocurrency allocation for a client is 6% of the client’s overall portfolio on average.
For wide exposure, 69% of the advisers polled would consider using an index fund, followed by sector-specific index funds (57%), actively managed funds (52%), individual digital assets (40%), and high-yield funds (31%) respectively.
Head of Digital Asset Index Research, Nasdaq, Jake Rapaport, said:
“The vast majority of advisors we surveyed either plan to begin allocating to crypto or increase their existing allocation to crypto. As demand continues to surge, advisors will be looking for an institutional solution to the crypto question that now dominates client conversations.”
“Crypto inflows through advisor channels show no signs of stopping, even as advisors grapple with compliance considerations and look for guidance from educational materials from other industry participants, including asset managers and index providers.”
Finally, almost 10% of advisers claim to be very knowledgeable about crypto, and another 9% claim to be very confident in their abilities to advise customers on digital assets. Almost all of the advisors surveyed (98%) expressed an interest in learning more about cryptocurrency and digital assets.