With catalysts such as bitcoin’s ascent above $100,000 and President Trump’s victory last November, market participants are increasingly interested in cryptocurrency. As a result, it’s likely that over the past few months, advisors have fielded more crypto questions than usual.
That trend is certain to continue over the course of 2025 and advisors need to be prepared. Advisors are up to the task. But a new study from CoinShares, an issuer of cryptocurrency funds and ETFs, indicates advisors have crypto priorities. And those don’t include helping clients chase big gains in speculative, volatile assets.
“Sixty two percent of advisors believe recommending a speculative asset like Bitcoin does not align with their legal obligation to act in their client’s best [interest. And] more than half of the 250 advisors surveyed worry that recommending digital assets could have a negative impact on their relationships with their colleagues,” noted CoinShares.
Thanks to debuts of spot bitcoin ETFs last year, including the CoinShares Valkyrie Bitcoin Fund (BRRR ), bitcoin is more accessible than ever for advisors and clients. However, fiduciaries are concerned that clients are accessing digital currencies in accounts outside advisors’ purview. They also worry those investors do so without acknowledging the risks associated with the asset class.
“53% of advisors rank volatility as a top concern when assessing challenges in advising clients on potential digital asset investments,” added CoinShares.
Attitudes, Education Are Paramount
Trump has signaled he’s stridently pro-cryptocurrency. So crypto bulls are banking on a favorable regulatory environment and the possible creation of a strategic bitcoin reserve to propel digital currencies this year. Those are among the reasons advisor attitudes toward crypto are increasingly positive.
“85% of advisors say the sentiment of their organization toward digital assets has changed since the [election. 80%] noted clients have more positive attitudes towards digital [assets. 85%] say the election impacted how they are advising clients on portfolio diversification,” according to CoinShares.
In another positive sign, advisors are open to meeting the demands of crypto-enthused clients by bolstering their knowledge bases. But they want their cryptocurrency education sourced from neutral parties.
“More than eight out of 10 advisors surveyed are willing to pay for education to enhance their knowledge of digital assets. However, 43% see crypto-native firms publishing biased information as a barrier to further understanding,” observed CoinShares.
Those are critical points at a time when eight in 10 advisors report experiencing an uptick in crypto inquiries from clients in recent months.
For more news, information, and analysis, visit the Crypto Channel.
