Nineteen percent (19%) of financial advisors say that more than half of their clients have made allocations to digital assets in their portfolios, according to the Q3 2024 Advisor Pulse Survey, sponsored by Franklin Templeton Digital Assets and conducted by the Digital Assets Council of Financial Professionals (DACFP).
The comprehensive survey of 619 financial professionals reveals continued acceleration in crypto investment recommendations and allocations. In the Q2 2024 survey, only 15% of advisors said that more than half of their clients owned crypto. Meanwhile, advisors reporting no crypto ownership among clients has dropped to just 3%, down from 8% Q2.
“The data show a clear shift in how financial advisors view digital assets as part of their clients’ portfolios,” said DACFP Founder Ric Edelman, CBDA. “More advisors are recommending crypto, and they’re increasing their recommended allocations. Both are signs of growing confidence in this asset class.”
Key findings include:
- 70% of advisors have recommended crypto to 10% or more of their clients
- The most common recommendation is a 2% allocation (by 26% of advisors), followed by a 5% allocation (22% of advisors)
- Among advisors not yet recommending crypto, 56% plan to do so, with more than half of them (28%) saying they’ll begin within the next six months
- 30% of advisors who plan to allocate to crypto in the future anticipate recommending 5% allocations. Another 22% of advisors plan to recommend 2% allocations
“Digital assets are an increasingly important component of what we call portfolios of the future,” said Sandy Kaul, Head of Franklin Innovation Research Strategies and Technology at Franklin Templeton. “With clients increasingly adding exposure to the asset class, advisors will need to continue to utilize educational resources that allow them to keep a strong pulse on the market as it evolves.”
To support advisors in this rapidly evolving space, DACFP and Franklin Templeton have partnered to offer “Blockchain, Bitcoin, and Beyond,” an educational course providing foundational knowledge for financial professionals looking to incorporate digital assets into their practice.
Methodology
The survey was conducted between July and September 2024, with 619 financial professionals participating. Of the respondents, 83% have more than 10 years of experience in the financial services industry, with 61% having 20+ years of experience. Sixty-one percent of respondents primarily serve clients with $500,000 to $3.5 million in assets, while 11% predominantly serve clients whose assets exceed $3.5 million. A third of the advisors surveyed manage more than $100 million in assets, with 5% managing over $500 million.
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