Advisor Trends

Financial Advisors Still Bearish On Cryptocurrency Use

Despite a slight uptick in adoption, more than half of financial advisors do not expect to use or ask about crypto with clients

A new report from Cerulli Associates explores the adoption of cryptocurrency among financial advisors. Access the full report here.

July 2, 2024, BOSTON—This issue of The Cerulli Edge—U.S. Monthly Product Trends analyzes mutual fund and exchange-traded fund (ETF) product trends as of May 2024 and explores financial advisors’ adoption of cryptocurrency.

This issue of The Cerulli Edge—U.S. Monthly Product Trends analyzes mutual fund and exchange-traded fund (ETF) product trends as of May 2024 and explores financial advisors’ adoption of cryptocurrency.

 

  • With $19.4 trillion in assets, the mutual fund structure continues to be an industry behemoth (even if product development is focused elsewhere), growing 3.3% in May via strong market returns.
  • U.S. ETFs closed May with $9.0 trillion in assets, a new record for the structure, gathering strong flows ($89 billion in May) across a range of exposures, which increasingly include active products.
  • With fees mostly within a small margin, brand familiarity is the differentiating factor that decides winners in the passive digital asset product ecosystem, and the same should be expected for future products. Spot-price ETH ETFs generally are not expected to see the same success as that of spot-price BTC ETFs, given the lower uptake that was seen for futures-based products and due to the lower total return expected relative to owning the digital assets directly with staking. 13.7% of financial advisors are using or discussing cryptocurrency with their clients, including only 2.6% making recommendations themselves, while another 26.4% expect to be able to discuss or use cryptocurrency investments with their clients in the future, still leaving more than half who never expect to do so.

 

 

 

About Cerulli Associates
For over 30 years, Cerulli has provided global asset and wealth management firms with unmatched, actionable insights.
Headquartered in Boston, Cerulli Associates is an international research and consulting firm that provides financial institutions with guidance in strategic positioning and new business development. Our analysts blend industry knowledge, original research, and data analysis to bring perspective to current market conditions and forecasts for future developments.

 

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