CryptoWire News Desk: U.S. financial advisors are increasingly embracing cryptocurrency exchange-traded funds (ETFs), with a majority signaling plans to expand their exposure in 2025. According to a survey presented by TMX VettaFi at the Exchange conference in Las Vegas, 57% of advisors intend to increase their allocations to crypto ETFs, while only 1% plan to reduce their positions. The survey, conducted among thousands of financial professionals, highlights a significant shift in sentiment.
“Crypto is part of everybody’s conversation today,” said Cinthia Murphy, senior investment strategist at TMX VettaFi. She noted that concerns over reputational risk, which previously discouraged many advisors, have largely faded. “Today, there’s no advisor that can’t at least hold a basic conversation in crypto,” Murphy added. One of the key areas of advisor interest is crypto equity ETFs funds that invest in publicly traded companies with exposure to the cryptocurrency industry.
Companies such as Strategy, formerly known as MicroStrategy, and Tesla are among the most notable holdings in these funds. Murphy explained that crypto equity ETFs offer a more accessible entry point for advisors unfamiliar with the intricacies of digital assets. “Crypto equity has been popular because it’s maybe a little easier to understand,” she said. Spot and multi-token ETFs are also gaining momentum. The survey revealed that 22% of advisors plan to allocate capital to spot crypto ETFs, including those focused on bitcoin and ether.
Meanwhile, 19% of respondents expressed interest in funds that hold a mix of cryptocurrencies. These developments underscore the growing diversity of products available in the crypto ETF space and the increasing willingness of advisors to include digital assets in client portfolios. Regulatory clarity is playing a key role in the growing adoption. Since the inauguration of U.S. President Donald Trump, regulatory bodies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have taken a more constructive stance toward the crypto market. The SEC’s approval of spot bitcoin ETFs in January 2024 marked a turning point, bolstering confidence and encouraging institutional participation.
The shift in regulatory posture has also benefited companies closely tied to digital assets. MicroStrategy’s stock, for example, has surged more than 100% since Trump assumed office, driven by investor optimism over its bitcoin holdings. Although the stock has pulled back from its peak, it remains a bellwether for crypto-related equities. With the stigma surrounding crypto largely diminished and a broader array of investment products available, financial advisors appear ready to integrate digital assets more fully into their strategies. The survey results suggest that crypto ETFs are becoming a normalized component of portfolio discussions, signaling continued institutional momentum in the crypto market.