More than 15% of financial advisors are waiting for Bitcoin at $ 100 thousand

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CONTENT

  • About 1% of financial advisors believe that Bitcoin will return to $ 10 thousand within five years.

  • Regulatory uncertainty remains the main risk

  • Brokers note growing interest in digital currencies among clients

International consortium of news organizations developing transparency standards.

CryptoManager Bitwise conducted a survey among financial advisers in order to find out the mood around cryptocurrencies

Clients of financial advisers are interested in bitcoin and may invest in cryptocurrencies on their own. This conclusion was reached by analysts of Bitwise Asset Management, who surveyed participants in the asset management market. 

Almost half (45%) of the respondents were financial advisors. They were followed by representatives of brokers (25%), financial planners (19%) and representatives of brokerage intermediaries (11%). All respondents manage assets on average between $ 50 million and $ 100 million.

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On the left is the number of requests from clients about cryptocurrencies. On the right is the likelihood of clients’ self-investing in cryptocurrencies. Source: bitwiseinvestments.com

According to the survey, more than 80% of those surveyed reported that they received questions from customers about cryptocurrencies. In 2020, this figure was 76%. However, the majority of survey participants (83%) admitted that they received inquiries from only a small number of customers (less than 10% of customers).

At the same time, more than 70% of respondents believe that their clients are already probably investing in cryptocurrencies on their own..

Bitcoin for diversification

Bitwise notes a sharp increase in the number of consultants who see “high potential return” from investing in cryptocurrency and its role in “hedging inflation”. 

The largest growth (from 9% in 2020 to 25% in 2021) was observed precisely in the use of cryptocurrencies as a tool for “hedging inflation”.

Reasons for investing in cryptocurrencies. Source: bitwiseinvestments.com

There has also been a significant increase in interest in cryptocurrencies among institutional investors. We will remind, earlier the head of the largest crypto fund Grayscale announced the imminent arrival on the cryptocurrency market of US pension funds and other giants of the financial industry.

The opinions on the low correlation of cryptocurrency with other assets remained at the same level (54%). It is noteworthy that earlier JPMorgan experts stated that Bitcoin is unlikely to be suitable for hedging risks due to large drawdowns and high correlation with cyclical assets..

More than 15% of financial advisors are waiting for Bitcoin at $ 100 thousand

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Main cryptocurrency risks

The main obstacle to entering the cryptocurrency market, according to respondents, remains regulatory uncertainty. More than 50% of financial advisers cited regulation as a key impediment, slightly less than 56% in the 2020 survey.

Source: bitwiseinvestments.com

In addition, respondents noted the risks associated with the high volatility of cryptocurrencies (39% in 2021 versus 43% in 2020), as well as with the lack of clarity in the valuation of digital assets (36% versus 41%).

Similar survey results were previously published by the consulting firm Aite Group. According to her survey, most institutions expect regulatory clarity and the emergence of traditional depositories. Thus, institutions want to hedge against force majeure situations..

Source: bitwiseinvestments.com

The key changes affected opinions on the price dynamics of the cryptocurrency. More than 30% of respondents said that in the next five years, Bitcoin will be traded in the range of $ 25,000 – $ 50,000. It is noteworthy that a year earlier, this opinion was held by only 8%. The smallest number of respondents (1%) believe that Bitcoin will collapse to $ 7,000 – $ 10,000. Over 15% predict the growth of cryptocurrency to $ 50,000 – $ 100,000.

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Disclaimer

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More than 15% of financial advisors are waiting for Bitcoin at $ 100 thousand
More than 15% of financial advisors are waiting for Bitcoin at $ 100 thousand
More than 15% of financial advisors are waiting for Bitcoin at $ 100 thousand

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