Crypto ETFs Gaining Massive Popularity Among U.S. Advisors as ‘Reputational’ Risk Gone

Financial advisors in the U.S. are showing a strong commitment to crypto exchange-traded funds (ETFs) and are poised to increase their holdings this year, according to a recent presentation at the Exchange conference in Las Vegas.

TMX VettaFi’s head of research, Todd Rosenbluth, and senior investment strategist, Cinthia Murphy, shared the results of a survey sent to thousands of financial advisors in the U.S. The survey revealed that 57% of advisors are planning to boost their allocations into crypto ETFs, while 42% intend to maintain their current positions. Interestingly, only 1% expressed a desire to decrease their exposure to crypto assets.

Murphy noted that crypto has become a prevalent topic of discussion among advisors, with virtually all of them now able to engage in basic conversations about the digital asset class. This shift in attitude can be attributed to the changing regulatory landscape and the growing acceptance of cryptocurrencies within the financial industry.

The approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) in January 2024, prior to the Trump administration, paved the way for increased institutional adoption of crypto assets. Under the current administration, regulators like the SEC and the Commodity Futures Trading Commission (CFTC) have adopted a more favorable stance towards cryptocurrencies, creating a more conducive environment for investment.

Survey respondents expressed a particular interest in crypto equity ETFs, which invest in publicly traded companies with exposure to the crypto industry, such as Strategy (formerly MicroStrategy) and Tesla. These assets offer a more tangible entry point for investors looking to gain exposure to the crypto market.

Since President Trump assumed office, stocks like Michael Saylor’s MSTR have seen significant gains, attracting both retail and institutional investors to crypto-linked equities. Despite some fluctuations in prices, these assets continue to draw interest from a broad spectrum of market participants.

In addition to crypto equity ETFs, financial advisors are also eyeing spot crypto ETFs and multi-token funds. Spot ETFs track individual cryptocurrencies like bitcoin and ether, while multi-token funds offer exposure to a diversified portfolio of digital assets.

The expanding range of crypto ETFs available on the market reflects the growing interest in the space. Several new funds, including index-based ETFs and managed funds that provide downside protection, are in the pipeline awaiting SEC approval.

While the SEC has yet to review proposals for additional spot crypto ETFs like Solana, XRP, and Litecoin, the overall trend suggests a strong appetite for crypto investment products among financial advisors.

As the crypto market continues to evolve rapidly, Murphy emphasized the importance of staying informed and collaborating with industry experts to navigate this dynamic landscape effectively.

In conclusion, the survey results underscore the growing enthusiasm for crypto ETFs among U.S. financial advisors and highlight the increasing relevance of digital assets in today’s investment landscape. With regulatory clarity and a wider range of investment products becoming available, the future looks bright for crypto ETFs in the U.S. market. The rise of artificial intelligence (AI) has been one of the most significant technological advancements of the 21st century. From self-driving cars to virtual assistants like Siri and Alexa, AI has permeated nearly every aspect of our daily lives. But what exactly is AI, and how is it changing the world as we know it?

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