• This study showed that the majority of professionals would like to have more exposure to crypto derivatives, provided they were approved by US authorities.
• The survey of 500 advisors revealed that the popularity of digital assets is on the rise, despite not being approved for cash ETFs.

Nasdaq conducted a study in which 500 financial professionals participated. It found that nearly three quarters of them want to invest more in Bitcoin and crypto assets if there is an ETF (exchange traded fund) approved by the US government.

72% of the financial advisors surveyed said they were won over by the idea of ​​increasing their exposure to BTC derivatives, according to the press release sent by Nasdaq to Bitcoin Magazine, which provides details of the results of the study.

It was also found that less than 9 percent of the advisors who were surveyed believed they would be able to offer expert advice to clients about crypto investment. All respondents indicated that they were either already or planning to invest in Bitcoin.

These findings show that financial advisors still have a lot to learn about the cryptocurrency industry. Study of the New York Stock Exchange’s automated and electronic version shows that much remains to be learnt about the blockchain-based new financial system.

Digital assets are more accessible

Nasdaq Digital Asset Index Research Head Jake Rapaport commented that “Over the last decade, financial advisors have been focused on shifting assets into index funds,” the statement noted.
“As they incorporate digital assets into their investment strategies, they are expressing strong interest in a similar vehicle that can offer broad asset class exposure for their clients,” he added.
The new research only reinforces the already existing trends in cryptocurrency markets. The interest in Bitcoin and other cryptocurrency continues to rise. Financial companies, such as banks, accept Bitcoin and other cryptocurrencies.

Bitwise, a cryptocurrency manager, conducted another study in January. It found that the number of finance professionals who use BTC and digital products has risen six points to 15% from 9% in 2020.

However, the Nasdaq survey found that 86% percent of advisors to cryptocurrencies expect to increase their allocations for the year. None of the surveyed said that they planned to reduce their portfolios of digital products.

Additionally, half of the professionals surveyed already used bitcoin-based ETF Futures. Another 28% indicated that they intend to continue using them in the coming 12 months.

Flipside

• While the Nasdaq data is informative of what’s happening in traditional finance, it doesn’t necessarily represent all US financial advisers.
• The study shows that crypto investors who are new to the space understand the value of investing in crypto.

However, 7% are still unsure of whether spot Bitcoin ETFs will be successful this year. A further 38% believe these products have a chance of succeeding, while 31% feel they are destined to fail. The remaining 24% of advisors don’t know anything and do not hold an opinion.

Even though there are still some doubts about the approval of a cash ETF in the future, this study shows that financial advisers placing money on these types of products is increasing.

They will seize the moment to gain an edge over others who wait to accept bitcoin investments or a spot ETF.

There are doubts over capabilities, but everybody wants to learn.

Survey results showed that registered investment advisors (RIAs), 34%, accounted for the majority of financial professionals surveyed. The survey also found that 19% of the respondents are independent stockbrokers, and 17% advisers to brokerage companies.

Only 7% said that their advisors were guided by ESG criteria in deciding whether to invest in crypto.

A further 10% stated that they were well-informed about cryptocurrency, while only 9% felt confident enough to offer advice.

The shocking fact that nearly all respondents (98%) said that they plan to continue learning about cryptography in order to be more knowledgeable on Bitcoin and other currencies is revealing.

Why you should care

• One of the most important takeaways from the study is that this year the majority of advisors surveyed plan “to begin allocating to crypto or increase their existing allocation to crypto,” Rapaport commented.

The Nasdaq executive stated that as demand for crypto continues to rise, advisors will look to find an institution solution to this question.

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