Specifically, 69% of these advisors will use index funds for broad exposure, followed by sector-specific index funds (57%), actively managed funds (52%), personal digital assets (40%), and High-yield funds (31%).
Despite the high demand for a passive approach to crypto and spot crypto ETFs, advisors remain skeptical that such a product will be approved before 2022. Only 38% believe it is likely, 31% believe it is unlikely, 24% believe it is neither likely nor likely, And 7% are unsure.
“Over the past decade, financial advisors have focused on transferring assets to index funds. As they incorporate digital assets into their investment strategies, they are expressing strong interest in a similar vehicle that can provide broader asset class exposure to their clients,” said Jake Rapaport, Digital Asset Index Research, Nasdaq. The chief said.
“Most of the advisors we surveyed either plan to start allocating to crypto or plan to increase their existing allocation to crypto. As demand continues to grow, advisors ask crypto questions. Will seek institutional solutions that now dominate customer interactions,” he said.
According to the survey, registered investment advisors (RIAs) are the most likely to employ cryptocurrency, with 34% doing so compared to 19% for independent broker-dealers (IBDs) and 17% for wirehouse advisors.