The capital allocation decisions made by US financial advisors are crucial for emerging asset classes like cryptocurrency. These professionals control over $20 trillion in wealth, accounting for roughly half of all wealth in the United States. They play a key role in educating both consumers and institutions about market opportunities and risks.
Bitwise and VettaFi’s annual survey has become an important tool for tracking the evolving attitudes and understanding of financial advisors toward crypto. Now in its fifth year, the survey reveals critical trends in how advisors—and their clients—are engaging with digital assets, and how these behaviors are shaping the broader crypto investment landscape.
So, how do advisors view crypto today? Despite market turbulence, long-term optimism remains strong. Both advisors and their clients continue to show interest and maintain crypto allocations near all-time highs. At the same time, limited access, regulatory uncertainty, and market volatility remain significant barriers to broader adoption.
Here are six key findings from the Bitwise/VettaFi 2023 Benchmark Survey on financial advisor attitudes toward crypto assets.
Key Survey Findings on Crypto Adoption
Crypto Allocations Remain Stable Despite Market Volatility
Despite challenging market conditions, the proportion of advisors allocating to cryptocurrency in client accounts held relatively steady in 2022. Fifteen percent of respondents reported making such allocations, compared to 16% in 2022—a significant increase from 9% in 2021 and just 6% in 2020.
A major factor influencing this slow but steady climb is licensing. Only 29% of advisors stated they were permitted to purchase crypto in client accounts. However, among this group, 52% currently make allocations on behalf of their clients, underscoring the importance of access.
Once Invested, Advisors Stay Invested (or Increase Exposure)
A compelling divergence in attitudes exists between advisors who already allocate to crypto and those who do not. Among those who have not yet allocated, 74% either do not plan to add exposure in 2023 or are still weighing the pros and cons.
In contrast, 78% of advisors who currently allocate to crypto in client accounts plan to either maintain or increase their exposure. This suggests that firsthand experience leads to greater familiarity and comfort with the opportunities and risks of crypto, while those on the sidelines may have been deterred by the market downturn of 2022.
Client Interest Remains Strong
The past year was filled with crypto-related headlines, and client curiosity remains a significant driver of advisor interest. A striking 90% of advisors received questions from clients about cryptocurrency last year. Although this is a slight decrease from the 94% reported in 2021, it is still higher than the 81% in 2020 and 76% in 2019.
When asked which question they received most frequently from clients, over half (56%) of advisors selected: “Should I consider investing in cryptocurrency?”
Clients Are Investing in Crypto on Their Own
According to respondents, 59% of clients invested in cryptocurrency outside of their advisory relationship in 2022, down from 68% in 2021.
Among these self-directed investors, 75% gained exposure through centralized crypto platforms like Coinbase, while 41% invested directly from their own crypto wallets. Interestingly, only 18% accessed crypto through self-managed brokerage accounts, indicating a preference for crypto-native pathways.
Short-Term Bearish, Long-Term Bullish
Historically, one of the survey’s most engaging topics has been measuring expectations around Bitcoin’s price. The results reflect a short-term cautiousness among advisors.
Fewer than half (37%) of respondents believe Bitcoin’s price will be higher one year from now. However, financial advisors show strong long-term confidence in Bitcoin, with 60% believing it will gain value over the next five years.
Regulatory Uncertainty and Volatility Are Top Concerns
The major pain points of the crypto industry in 2022—corporate failures, extreme price volatility, and a lack of regulatory clarity—were clearly reflected in the barriers advisors cited for initiating or increasing crypto exposure.
The primary concern, regulatory uncertainty, remains a persistent worry. Sixty-five percent of advisors cited this as a barrier to further adoption, up from 60% in 2021, 52% in 2020, and 56% in 2019. On an encouraging note, advisors appear to be growing more confident in their crypto knowledge. Fewer selected “lack of understanding” (25%) or “lack of confidence talking about crypto” (16%) as barriers in 2022.
Concluding Thoughts
The survey results confirm what has been heard in daily conversations with thousands of financial professionals throughout 2022: although failures like FTX and severe market volatility are concerning, advisors and their clients continue to invest in crypto, and interest levels remain high.
That said, institutional investors cannot easily shake off the events of 2022, and concerns about credibility in the crypto space linger. As recently as last month, the fallout from FTX’s collapse claimed another victim with the bankruptcy of major crypto lender Genesis Global. This event left Gemini entangled, with hundreds of millions in client assets locked up, and both companies now face lawsuits from the SEC.
Meanwhile, crypto banking giant Silvergate experienced a classic bank run in the fourth quarter, with clients withdrawing 68% of deposits amid solvency fears. Regulatory challenges also continue to emerge.
Additional specific risks loom in 2023. These include concerns about unregulated entities like Tether and Binance, fears of a massive Bitcoin sell-off if the Mt. Gox bankruptcy is finally settled, and similar worries about Ethereum price pressure following the Shanghai upgrade, which will allow staked ETH to be withdrawn and potentially sold.
Against this backdrop, the Federal Reserve continues to raise interest rates, and fears of a recession persist. Clearly, there is plenty to be concerned about this year.
And yet… the data suggests a bull market will eventually return. The path may not be straight—there are too many risks to expect prices to rise uninterrupted. But the long-term trajectory for crypto appears increasingly solid.
👉 Access the full survey report for deeper insights
Frequently Asked Questions
How many financial advisors are investing in crypto?
Approximately 15% of financial advisors reported allocating cryptocurrency in client accounts in 2022. This number has grown steadily from just 6% in 2020, indicating a gradual but consistent increase in adoption.
What is the biggest barrier for advisors entering the crypto market?
Regulatory uncertainty is the most commonly cited barrier, with 65% of advisors pointing to it as a major obstacle. Other significant concerns include volatility, custody issues, and compliance complexities.
Are clients interested in learning about crypto?
Yes, client interest remains strong. Last year, 90% of advisors received questions from clients about cryptocurrency. The most frequent question was whether they should consider investing in it.
How are clients investing in crypto if their advisor doesn’t offer it?
Many clients are investing on their own. In 2022, 59% of clients were investing in crypto outside of their advisory relationship, primarily through centralized platforms like Coinbase or directly via their own crypto wallets.
Do financial advisors believe Bitcoin will increase in value?
Advisors are short-term cautious but long-term optimistic. Only 37% believe Bitcoin’s price will be higher one year from now, but 60% think it will gain value over the next five years.
What happens once an advisor starts allocating to crypto?
Experience breeds confidence. Among advisors who currently allocate, 78% plan to maintain or increase their exposure in 2023, suggesting that familiarity with the asset class reduces hesitation over time.
Survey Methodology: The Bitwise/VettaFi 2023 Benchmark Survey was conducted from November 25, 2022, to January 6, 2023. It sampled various types of financial advisors across the US, including independent RIAs, broker representatives, financial planners, and wirehouse representatives. The full methodology and disclosures are available in the original report.