CryptoBitcoinAdvisors Hesitant as Bitcoin ETFs Surge with $14.6 Billion Inflows

Advisors Hesitant as Bitcoin ETFs Surge with $14.6 Billion Inflows

Spot Bitcoin ETFs have seen significant success, attracting over $14.6 billion in inflows since their launch in January. Despite this impressive performance, the majority of financial advisors remain reluctant to discuss cryptocurrencies with their clients.

A recent study by Cerulli Associates highlights this disconnect, revealing that only 2.6% of advisors have recommended crypto opportunities to their clients. Moreover, just 12.1% are willing to discuss crypto if clients initiate the conversation. This hesitancy forces investors to navigate the complex crypto landscape independently.

Samara Cohen, BlackRock’s Chief Investment Officer of ETF and Index Investments, noted that approximately 80% of these inflows come from self-directed investors using online brokerages.

Regulatory Uncertainty: A Major Barrier

The reluctance of financial advisors to embrace cryptocurrencies is primarily driven by regulatory uncertainty. The Cerulli report emphasizes that, despite some recent positive developments, a comprehensive regulatory framework for digital assets is still lacking. The passage of the Financial Innovation and Technology for the 21st Century Act (FIT21), which has cleared the House of Representatives, could provide some clarity if it receives Senate and Presidential approval.

However, regulatory progress alone might not suffice. Bloomberg Intelligence analyst James Seyffart pointed out that many leading wealth platforms, wirehouses, and advisor networks have yet to fully approve Bitcoin ETFs. Currently, advisors or brokers can only purchase Bitcoin ETFs for clients upon explicit request.

Seyffart predicts that regulations allowing advisors to offer spot Bitcoin ETFs more freely may be established by the end of the year, although the process could extend over several months.

Gradual Warming to Crypto

Despite the prevailing caution, there is a slight shift in attitude among financial advisors. Cerulli’s study found that 58.9% of advisors still do not expect to discuss crypto with their clients, a decrease from 62.2% last year. This indicates a slow but growing openness to cryptocurrency discussions within the advisory community.

Related Topics:

Share This Post

Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

Related Posts

U.S. Bitcoin ETFs See Renewed Inflows, Ethereum ETFs Also Record Gains

U.S. spot Bitcoin exchange-traded funds (ETFs) saw a resurgence...

SOS Ltd. Announces $50 Million Bitcoin Investment Plan

SOS Ltd. (SOS) has unveiled a strategic plan to...

XRP Soars 11% in One Day, Bitcoin and Ethereum Also Post Gains

XRP experienced a notable 11.26% surge on Wednesday, trading...

Ethereum Surges 10% in One Day, Bitcoin and Tether See Gains

Ethereum saw a significant 10.05% jump on Wednesday, trading...

Bitcoin Shows Signs of Recovery as Key Support Holds, Ethereum Breaks Resistance

Bitcoin is showing early signs of recovery following a...

Bitcoin Rebounds Amid Growing Optimism Over Trump’s Pro-Crypto Agenda

Bitcoin surged on Thursday, continuing its overnight rebound as...