More Advisors Plan to Recommend Crypto: Survey

Only 34% of advisors said they are actively recommending crypto to clients, down from 59% in the December survey. DACFP said anecdotal evidence suggests that this decline resulted from firms issuing updated guidance to advisors during their due diligence process of evaluating the new spot bitcoin ETFs.

Of respondents who said they are recommending crypto, 8% are recommending it to all their clients, a slight increase from December. Another 24% have recommended crypto to more than half of their clients, and 35% have recommended to less than 10%.

Overall, 87% of respondents said they are recommending that clients allocate 1% to 5% of their assets to crypto, with 31% settling a 2% recommended allocation. Another 8% of advisors recommend allocations of 10% to 14%, and 1% are recommending allocating more than 20%.

“Advisors increasingly express interest in allocating towards digital assets as a means of better diversifying their clients’ portfolios and capturing the investment opportunity represented by the growing protocol-based network economy,” Sandy Kaul, head of digital asset and industry advisory services at Franklin Templeton, said in the statement.

Of the advisors who have not yet allocated to crypto but said they intend to do so, 28% said they planned to allocate 5% of assets in client portfolios.