Eighty-six percent of the surveyed advisers, who control roughly $26 trillion of cumulative capital, also plan to invest more in crypto over the year, which means that institutional adoption is expected to grow in the near future, according to a recent survey of 500 financial advisors conducted by Nasdaq.
Those who have already invested in cryptocurrencies on behalf of their clients do not plan to reduce their positions over the next 12 months.
Still, advisors who took part in the poll are not ready to dive headlong into cryptocurrencies; their ideal allocation currently stands at a modest 6%.
Moreover, the survey does not include those financial advisors who remain skeptical of cryptocurrencies, which obviously makes it less reliable.
Strong demand for a spot-based crypto ETF
The vast majority of the respondents (72%) would be more likely to invest in cryptocurrencies through a spot-based exchange-traded fund in the U.S., which highlights great demand for a yet-to-be-launched product.
The U.S. Securities and Exchange Commission (SEC) approved a future-based Bitcoin futures exchange last October, but it has so far rejected multiple attempts to launch a spot-based ETF. More than 50% of the respondents gain exposure to crypto through a futures-based fund. Nearly a third of them are also planning to put money into such an investment vehicle in the future.
Despite the initial excitement surrounding the launch of a futures-based ETF, investors quickly grew dissatisfied with the product due to diluted exposure, fees and divergence between the price of the underlying asset and paper futures. Hence, many are clamoring for an ETF based on spot prices.
Tomiwabold Olajide
Vladislav Sopov
Dan Burgin