The winds of change are blowing through the world of finance, as a recent Bitwise Asset Management survey reveals a significant shift in sentiment among U.S.-based financial advisors toward cryptocurrency investments. Conducted in collaboration with VettaFi, the survey highlights that 56% of advisors are now more inclined to invest in digital assets following Donald Trump's victory in the 2024 U.S. presidential election.

A Surge in Crypto Adoption Among Advisors

The 2025 survey, conducted between November 14 and December 20, shows a remarkable increase in crypto adoption among financial advisors. The percentage of advisors allocating crypto to client portfolios doubled year-over-year, rising from 11% in 2023 to 22% in 2024. Additionally, 99% of advisors already holding digital assets plan to maintain or increase their exposure in 2025.

Matt Hougan, Chief Investment Officer at Bitwise, described 2024 as a transformative year for the crypto industry. "Advisors are awakening to crypto’s potential like never before," he said. "But perhaps most staggering is how much room we still have to run, with two-thirds of all financial advisors still unable to access crypto for clients. We see that changing in 2025 as the mainstream era of crypto continues apace."

ETF Accessibility: A Double-Edged Sword

The approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission in 2024 marked a milestone in institutional cryptocurrency acceptance. However, obstacles remain. While ETFs have made crypto more accessible to advisors and individual investors, only 35% of questioned advisors reported being able to purchase digital assets directly in client accounts.

Expense ratios emerged as a critical criterion for advisors when selecting ETFs, with 58% saying it was the most essential aspect. Other priorities included the brand of the issuer (46%) and issuer support (43%), indicating the value placed on subject-matter expertise in the crypto space.

Despite these hurdles, total net assets in U.S. spot Bitcoin ETFs reached $106.8 billion by late 2024, representing 5.74% of Bitcoin’s total market capitalization.

Bitwise Survey
Bitwise Survey

Barriers to Adoption and Future Outlook

Regulatory uncertainty remains the biggest concern for financial advisors, with 55% naming it as the main barrier to more crypto investments. Other obstacles include volatility (43%), the need for better custodial solutions (33%), and limited real-world use cases (34%).

Todd Rosenbluth, Head of Research at TMX VettaFi, expressed optimism about the future. "Based on the latest data, the future is very bright as advisors and investors gain more access and education about the potential benefits of crypto investments," he said.

Advisors also showed growing interest in diversifying their crypto exposure. Crypto equity ETFs (22%) and diversified crypto index funds (19%) were among the most preferred investment vehicles for 2025.

A Turning Point for Crypto

The 2024 U.S. elections appear to have marked a turning point for the cryptocurrency market. President-elect Donald Trump’s embrace of digital assets, including a strategic Bitcoin (BTC) reserve proposal, has fueled optimism. Additionally, pro-crypto candidates secured key victories in Congress, tilting the political environment in favor of the industry.

The report also highlighted mounting speculation over Senator Cynthia Lummis’ (R-WY) proposal for the U.S. to purchase 1 million Bitcoins over five years, with 45% of advisors believing it will happen.

Remaining Barriers

Despite growing enthusiasm, challenges remain. Volatility (47%) and regulatory uncertainty (50%) remain the top barriers to advisor adoption. However, regulatory concerns have decreased compared to prior years, reflecting a more favorable outlook under the incoming administration.

65% of advisors still cannot or are unsure whether they can allocate crypto in client accounts, remaining a significant hurdle.

Encouragingly, advisors are increasingly confident in their ability to value crypto assets, with only 31% citing valuation concerns in 2024, down from 42% in 2023. Custody concerns are also easing, with fear of hacks dropping from 38% in 2022 to 24% in 2024.

Shifting Strategies

The report also highlighted changing preferences among advisors for crypto investment vehicles. Crypto equity ETFs (25%) remain the most popular choice, as they offer a familiar entry point for advisors hesitant about direct crypto exposure.

Interest in spot crypto ETFs (22%) and diversified crypto index funds (19%) has surged, reflecting a growing appeal of professionally managed options.

The report noted that advisors are exploring more sophisticated strategies, with thematic strategies (26%) and buffered strategies (24%) commanding significant attention. These approaches aim to mitigate crypto’s volatility and deliver differentiated returns.

As advisors and investors gain more access and education about the potential benefits of crypto investments, the future looks promising for the integration of digital assets into mainstream financial advisory services.

Ethereum ETFs Getting Closer To SEC Green Light As Amended Filings Pile Up | HODL FM
Ethereum ETFs near SEC approval as major firms submit amended…
hodl-post-imageHODL FM: The Wildest Ride in the Crypto MarketAbimbola Adu
hodl-post-image

 Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.