Las Vegas – US financial advisors are committed to crypto exchange sales funds (ETFs) and are ready to increase their holdings this year.
In a presentation at the Exchange Conference in Las Vegas, Cynthia Murphy, director of Todd Rosen Bruce and senior investment strategist at TMX Vettafi Research, presented the findings of a survey sent to thousands of financial advisors in the US, claiming that cryptography is “part of all the conversations today.”
The results showed that 57% of advisors planned to increase their allocation to cryptographic ETFs, and 42% were more likely to maintain their position. In reality, no one wants to reduce their position.
“I think last year, messaging was a reputational risk. Today, at least there are no advisors who can’t have basic conversations in cryptography,” Murphy said.
The Securities and Exchange Commission (SEC) approved the Spot Bitcoin ETF in January 2024, a year before President Donald Trump took office, but the enthusiastic embrace of the new crypto industry administration may have supported a broader institutional adoption. Regulators, including the SEC and the Commodity Futures Trading Commission (CFTC), have overturned the crypto course since President Trump’s launch, signaling a more friendly and clearer regulatory approach.
Respondents said they were particularly interested in Crypto Equity ETFs, which are funds to invest in companies exposed to the crypto industry and are publicly exposed, such as Strategy (formerly MicroStrategy) and Tesla.
“The reason Crypto Equity has become so popular is probably because it’s a bit easier to put your fingers around it,” Murphy added.
Since Trump joined the Oval Office, Michael Saylor’s MSTR stock has seen more than 100% rallies, bringing crypto-related stocks to advantage both retail and institutional investors. MSTR stocks have been re-profitable since reaching an all-time high. However, the findings seem to suggest that they are still attracting interest from all parts of the market.
Spot and Multi-Token ETF
Crypto Equity-LinkedETF is not just gaining momentum with financial advisors. Approximately 22% of survey respondents said they were considering allocating capital to spot cryptographic ETFs, such as spot Bitcoin (BTC) and spot ether (ETH) ETFs.
The third largest group that approximately 19% of respondents said they were interested was the cryptocurrency fund, which held multiple tokens.
Many crypto ETFs are traded on the exchange, with several more in the process of getting approved by the SEC, which will be listed in the future.
In the past few months, we have seen a large number of index-based ETFs in particular. That is, it holds a basket of crypto assets behind Bitcoin and ether. Other launches include managed funds that, for example, protect price volatility by assigning a percentage of the US Treasury.
Several issues have submitted to the market for more spot Crypto ETFs, including Solana (SOL), XRP, and Litecoin (LTC), but the SEC has not yet reviewed it.
“This is a growing space and I highly recommend getting to know space experts because it moves fast and there’s a lot to learn,” Murphy said.
Cheyenne Ligon contributed to the story.
Read more: Top Catalysts of Crypto Regulation Transparency for Industrial Growth: Coinbase & EYP Survey
