Advisors Testing Crypto Investments Have No Abandonment Plans – NASDAQ Survey

A new NASDAQ survey has revealed that financial advisors testing the crypto investment space plans to keep investing in the digital asset space. 87% of 500 investment advisors investing in the crypto space state that they will keep investing in it at least for the next 12 months. Furthermore, none of them plan to reduce their crypto holdings.

A Shift In Mindset

It has to be noted that the survey doesn’t include advisors who are skeptical about crypto investments. Even those investing their clients’ money in crypto are not going all in. Instead, they are only investing 6% of their clients’ portfolios in crypto. This mindset shift shows that some investors now consider cryptos a true investment form.    

Also, most of them desire that there would be crypto equivalents of traditional assets such as equities, ETFs, and other commodities. Jake Rapaport, who headed the NASDAQ survey, commented that “most survey participants planned to start allocating funds to crypto or increase their current crypto investments.”

He added that “with rising demand for crypto investments, there would be institutional answers to questions surrounding crypto investments sooner than later.” Even though the survey was limited to advisors who are receptive to crypto, they still admitted that most of the challenges facing the crypto space could be solved by appropriate regulatory policies.

A Preference For Crypto ETFs

However, most of them specified that they were more interested in investing in crypto ETFs because it limits the risks of direct exposure to the huge volatility of the crypto market. Even though there are a few ETF investments for crypto futures, most crypto advocates prefer crypto spot funds. The advocates opined that futures-based funds entail unnecessary funds, and there is often an imperfect correlation in these products between trading prices and the underlying digital assets.

Rapaport said, “financial advisors’ focus has become more interested in index funds within the last ten years.” “Now that they are interested in investing in digital assets, they are showing their bias for an investment option that provides broad asset class exposure for their clients.” More than 50% of the advisors stated that some of their crypto allocations are in BTC futures ETF, while another 29% said they would invest in crypto futures ETF within the next 12 months.

Crypto Spot ETFs Are Not Happening Anytime Soon

Unfortunately, advisors would need to wait longer than expected before investing in a crypto spot ETF similar to traditional funds because the SEC hasn’t approved any of the many spot ETF proposals on its desk. The top financial regulator continues to delay its review and keeps extending deadlines for approvals. Their actions indicate that the regulator wants to take its time before approving any crypto spot ETF.

Despite the increasing values in crypto prices and increasing trade activities, legislators remain unfazed over hastening the adoption of any crypto regulation. Rather, some of the vocal ones, such as Sen. Liz Warren, reiterate that crypto’s use remains synonymous with fraud.

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