Forty Percent of Financial Advisors Recommend Crypto to the Majority of Their Clients
DACFP and Franklin Templeton Digital Assets Advisor Pulse Survey reveals surge in crypto adoption and allocation recommendations
GREAT FALLS, Va., Aug. 28, 2024 /PRNewswire/ — Four in 10 (40%) financial advisors report they have recommended crypto to at least half of their clients, up from 32% in March 2024, according to findings from the June 2024 Advisor Pulse Survey, conducted by the Digital Assets Council of Financial Professionals (DACFP) and sponsored by Franklin Templeton Digital Assets.
The June survey gathered responses from 584 financial professionals and shows that advisors are increasingly recommending crypto to their clients, following the launch of spot bitcoin ETPs in the U.S. marketplace at the beginning of the year. The number of advisors recommending crypto to all their clients nearly doubled, rising from 8% in March 2024 to 13% in June 2024.
“The availability of spot bitcoin ETPs is clearly driving increased advisor engagement with crypto,” said DACFP Founder Ric Edelman, CBDA. “This data underscores the urgent need for advisors to enhance their digital asset knowledge to effectively serve their evolving client base.”
The most frequently recommended crypto allocation is 2%, indicated by nearly one in four advisors (24%). This is consistent with the March 2024 survey which also found 2% to be the most commonly recommended allocation. The number of advisors recommending that clients allocate between 1% to 5% of their assets to crypto remained roughly the same, increasing only one percentage point from March 2024 (87%) to June 2024 (88%).
Among advisors not yet recommending crypto to clients, the majority (56%) say they plan to do so in the future. Four in 10 (40%) intend to begin recommending digital assets within the next six months, up from 35% who indicated this intent in March 2024. Nearly all advisors (91%) plan to recommend that clients allocate between 1% to 5% of their assets to digital assets.
“We’re excited to see that the advisor community and their clients increasingly express interest in digital assets investments,” said Sandy Kaul, Head of Digital Asset & Industry Advisory Services at Franklin Templeton. “The introduction of new products like spot crypto ETPs emphasizes the need for advisors to partner with firms capable of providing the guidance and education required to navigate the rapidly developing market.”
Franklin Templeton Digital Assets recently worked with DACFP to launch the online Discovering Digital Assets: Blockchain, Bitcoin and Beyond course, which provides financial professionals with practical and actionable advice to effectively incorporate digital assets into their businesses. DACFP also offers the Certified in Blockchain and Digital Assets℠ professional designation.
Methodology
The survey was conducted in June 2024, with 584 financial professionals participating. Of them, 68% are financial advisors of independent RIA firms and the remainder work for independent brokerage firms (19%), wirehouses (2%), or other types of companies in the financial services industry, such as trust companies and family offices (11%). This segmentation tracks very closely to the March 2024 survey.
Nearly nine in 10 (85%) respondents have more than 10 years of experience in the financial services industry, with six in 10 (59%) having 20+ years of experience. Almost two-thirds (65%) of respondents primarily serve clients with $500,000 to $3.5 million in assets, while 9% predominantly serve clients whose assets exceed $3.5 million. Three in 10 (30%) advisors manage more than $100 million in assets.
For detailed survey findings, visit https://dacfp.com/further-reading/.
About DACFP
Founded by Ric Edelman, the Digital Assets Council of Financial Professionals is the leading provider of crypto education. DACFP connects the financial services industry and digital assets communities with leading experts via live and online events, webinars, blogs and other educational content. Its flagship program, the Certified in Blockchain and Digital AssetsSM, is the first and largest certification program of its kind—an online self-study program featuring a world-class faculty and 18 Continuing Education credits. Thousands of financial professionals from 37 countries have enrolled.
About Franklin Templeton Digital Assets
Franklin Templeton Digital Assets has been active in the digital asset ecosystem since 2018, building blockchain-based technology solutions, developing a range of investment strategies, and running node validators. Franklin Templeton Digital Assets’ dedicated digital assets research team leverages fundamental “tokenomic” analysis, insights from an embedded data science team, and deep industry connections to help inform product development and investment decisions. For more information, please visit Franklin Templeton Digital Assets and follow the team on X.
Franklin Templeton Digital Assets is a part of Franklin Resources, Inc. [NYSE: BEN], a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.66 trillion in assets under management as of July 31, 2024. For more information, please visit franklintempleton.com and follow us on LinkedIn, X and Facebook.
SOURCE Digital Assets Council of Financial Professionals
