Spot Crypto ETF in Demand by Majority of Financial Advisors, Finds New Nasdaq Survey
According to a new Nasdaq survey of 500 financial advisors who are
currently or considering allocating to crypto, 72% of advisors
would be more likely to invest client assets in crypto if a spot
ETF product were offered in the United States.
Among advisors already investing in crypto, 86%
expect to increase their allocations over the next 12 months, while
0% report plans to decrease. Of the same group, 50% are already
using Bitcoin futures ETFs and 28% plan to start using them in the
next 12 months.
On average, advisors currently or considering
investing in crypto state that their ideal crypto allocation is 6%
of a client’s total portfolio. Notably, some 69% of these advisors
would consider using an index fund for broad exposure, followed by
sector-specific index funds (57%), actively managed funds (52%),
individual digital assets (40%) and high-yield funds (31%).
Despite strong interest in a passive approach to
crypto and a spot crypto ETF, the surveyed advisors are not
confident that such a product will be approved in 2022. Only some
38% find it likely, 31% find it unlikely, 24% find it neither
likely nor unlikely, and 7% are not sure.
“Over the last decade, financial advisors have been
focused on shifting assets into index funds. As they incorporate
digital assets into their investment strategies, they are
expressing strong interest in a similar vehicle that can offer
broad asset class exposure for their clients,” said Jake Rapaport,
Head of Digital Asset Index Research, Nasdaq. “The vast majority of
advisors we surveyed either plan to begin allocating to crypto or
increase their existing allocation to crypto. As demand continues
to surge, advisors will be looking for an institutional solution to
the crypto question that now dominates client conversations.”
RIAs Early Adopters as Educational and ESG
The survey finds that crypto adoption is highest
among registered investment advisors (RIAs), with 34% of RIAs using
crypto compared to 19% of independent broker-dealers (IBDs) and 17%
of wirehouse advisors. About half of RIAs (49%) report that
compliance rules and restrictions are a barrier to crypto
investing, compared to 78% of advisors in all other channels.
Some 10% of advisors report being very
knowledgeable about crypto, and 9% feel very confident in their
ability to advise clients on crypto. Virtually all advisors
surveyed (98%) express interest in learning more about crypto and
Among respondents, some 7% say that ESG is a very
important consideration when determining a client’s strategy toward
“Crypto inflows through advisor channels show no
signs of stopping, even as advisors grapple with compliance
considerations and look for guidance from educational materials
from other industry participants, including asset managers and
index providers,” added Rapaport. “We expect ESG and crypto
considerations to converge as investors continue to direct assets
In March 2022, Nasdaq and Hashdex, a leading global
crypto-focused asset manager, announced the launch of the Nasdaq
Advisor Academy: Digital Assets curriculum to provide all financial
professionals with informative and educational resources on the
digital asset ecosystem.
For more information on the Nasdaq Crypto Index™,
please visit here.
MethodologyThis Nasdaq survey was
conducted by 8 Acre Perspective. A total of 500 financial advisors
who are currently or considering allocating to crypto were surveyed
in March 2022. For further details on the survey methodology,
please contact a Nasdaq media representative.
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