Bitcoin or bust: Advisors risk losing clients
Only 11% of financial advisors allocate crypto, despite rising client interest and record-breaking Bitcoin demand
Financial advisors are falling behind the curve. While Bitcoin continues to dominate headlines and smash records, a staggering number of advisors remain skeptical—or worse, silent—about the digital asset. But as client interest surges, those who fail to embrace crypto may soon find themselves losing out to more forward-thinking competitors.
A May 2024 crypto adoption analysis from consulting and research firm Cerulli Associates revealed that only 2.6% of financial advisors actively recommended Bitcoin to their clients. Even more telling, only 13.75% had even discussed crypto in any capacity.
Similarly, a survey by Bitwise/VettaFi in January showed that just 11% of financial advisors allocated crypto to client accounts, despite 88% of them fielding crypto-related questions from clients the previous year.
Juan Leon, senior investment strategist at Bitwise, took to X to highlight how allocations to crypto have declined year-over-year:
Crypto allocations fell year-over-year
— Juan Leon (@singularity7x) January 4, 2024
11% of advisors reported allocating to crypto in client accounts this past year. That’s below 2022 (15%) and 2021 (16%), but still above 2020 (9%) and 2019 (6%). pic.twitter.com/Sb5ZLzuPzq
Matt Apkarian, associate director of product development at Cerulli Associates, told Decrypt “If you're an advisor that is not able to offer it and not able to talk about it, then they might seek somebody who is willing to.”
Some advisors remain deeply skeptical. Certified financial planner Jim Crider, one of the few who recommends Bitcoin, said bluntly: “I talk with other financial planners all the time—99.99% of them vehemently disagree with me,” adding that “they think Bitcoin is tulips and Beanie Babies, and absolutely worthless.”
Rising stakes
Bitcoin’s recent resurgence further complicates the industry’s reluctance. Following the US elections, BTC has reached an all-time high of $93,000, shattering records week after week. Retail interest has surged alongside it, with Google Trends showing a peak in Bitcoin-related searches when Trump secured his victory.
On-chain activity also underscores growing adoption. According to Bitcoin Magazine, the number of new Bitcoin addresses being created continues to rise, reflecting increasing public engagement with the cryptocurrency.
A wake-up call
This shifting landscape presents a challenge—and an opportunity—for the financial advisory industry. As demand for crypto knowledge grows, advisors who fail to adapt risk alienating a rising generation of tech-savvy clients.
Bitcoin is no longer an obscure asset discussed in niche circles. For advisors, ignoring it could mean being left behind in a world that is rapidly embracing the future of finance.
