Financial Advisors Double Down on Crypto as Client Interest Surges

Latest survey shows financial advisors are increasingly bullish on cryptocurrency, with nearly half recommending allocations of 2-5% in client portfolios.

The landscape of investment advice is rapidly evolving, with cryptocurrency taking center stage in portfolio discussions. A new joint survey by the Digital Assets Council of Financial Professionals and Franklin Templeton Digital Assets reveals a dramatic shift in how financial professionals view and recommend digital assets.

Client Crypto Adoption Reaches New Heights in 2024

The latest data shows unprecedented cryptocurrency adoption among advised clients, with 19% of financial professionals reporting over half their client base now holds digital assets – a 4% jump from early 2024. Even more telling, only 3% of advisors report zero crypto holdings among their clients, marking a historic low.

The survey, encompassing 619 financial professionals primarily serving clients with $500k to $3.5m in assets, demonstrates that 70% of advisors have recommended crypto investments to at least 10% of their clients. More notably, 36% have extended this recommendation to half or more of their client base.

Conservative Allocations Dominate, but Bigger Positions Gain Traction

While most advisors maintain a cautious approach, recommending modest portfolio allocations, there's growing comfort with larger positions. The most common recommendation stands at 2% (favored by 26% of advisors), followed by 5% (preferred by 22%). This represents a significant shift toward larger allocations compared to previous surveys.

The future looks even more promising for crypto adoption, with 56% of currently non-recommending advisors planning to include digital assets in their advisory services. Of these, 28% aim to implement these changes within six months, while 23% target a one-year timeline.

Market Momentum Builds as Bitcoin Breaks Records

The advisory trend aligns with broader market movements, as Bitcoin recently surpassed $94,000, setting new records. Institutional interest continues to grow, with 57% of professional investors planning to increase their long-term crypto positions. The combination of spot Bitcoin ETF options trading and positive political signals has created unprecedented momentum in the digital asset space.

The survey reveals that 85% of advisors considering crypto inclusion prefer a 1-5% allocation range, while a bold 13% are open to recommending positions of 10% or more, signaling growing confidence in the asset class's long-term potential.