According to a survey conducted by the Journal of Financial Planning and Financial Planning Association (FPA), more financial advisors are recommending cryptocurrencies to their clients than ever before.
While many financial advisors remain skeptical about the viability and future of digital assets, it does appear that opinions are softening in the industry surrounding cryptocurrency. This is according to a 2021 Trends in Investing Survey. The survey indicates that more than a quarter of financial advisors stated they plan to make more recommendations to clients about investing in digital assets over the next calendar year.
Additionally, nearly half (49%) of all surveyed, reported that clients had asked them about investing in crypto within the previous six months.
Those numbers represent a significant uptick in interest by both advisors and their clients alike. Cryptocurrencies were only added to the survey in 2018 when a mere 1.4% of advisors stated they were recommending or would recommend them in the next 12 months.
The following two years, that number actually dropped below 1%. As far as the clients go, the number of them asking advisors about cryptos has nearly doubled since the 2020 survey.
Another interesting addition to the survey this year was a question about their participation, if any, in the GameStop rally. While most advisors stated they did not buy into the GameStop craze, 34% said that their clients did purchase shares while 20% purchased some themselves.
Celebrity financial experts also recommend crypto
While the financial world grapples with fully adopting cryptocurrencies, a number of high-profile members of the community have recommended investing in digital assets. While not financial advisors by trade, these individuals possess a lot of knowledge about investing and possess a lot of influence on the publics opinion.
Co-host of Shark Tank, Kevin O’Leary who originally stated that Bitcoin was a “useless currency,” has now changed his tune. Recently, the television host and businessman, stated that he will move around 3% of his assets to cryptocurrency and believes that the public should do the same.
In March, ‘Mr. Wonderful’ tweeted, “Is bitcoin a currency? Property? An asset? Maybe all of the above, I’m going with a 3% portfolio allocation and am looking at investing in miners that can create coins under a mandate of 0 carbon so sustainably!”
Another name in the finance game who began recommending crypto is Anthony Scaramucci. The former White House Director of Communications said he advises his clients to invest between 1% and 3% into cryptocurrencies.