It looks like financial advisors are trying to get their clients to think more about cryptocurrencies.

Financial Advisors Are Starting to Open Up

Up to this point, digital assets have been relatively scary when looked at by such advisors. Many have sought to get their clients to focus more on precious metals, stocks and bonds, which are less volatile and have stronger histories in the financial space.

Crypto is vulnerable to heavy price swings and cyberattacks, leaving many to question whether they qualify as safe investments. However, as crypto stretches deeper into mainstream territory, some advisors are rethinking the space and considering some of the legitimate properties that might make them safer and stronger for people serious about investing.

A new report issued by Bitwise and ETF Trends suggests that just under ten percent of financial advisors either hold or advocate holding cryptocurrency assets for their clients. In addition, independent RIAs have a stronger record when it comes to crypto promotion than standard advisors likely because they face fewer restrictions. They also possess a little more leeway when it comes to making financial decisions for their clients.

The report also suggests that the number of financial advisors set to hold crypto assets for their customers will probably double now that that 2020 has arrived. The document explains that more than half (approximately 54 percent) of the surveyed advisors do not believe bitcoin or other forms of crypto correlate with other asset classes.

This, in their minds, is a “good enough” reason to jump onboard the crypto bandwagon and suggests that many are becoming more open-minded when it comes to digital assets.

The report reads:

That finding aligns with Bitwise’s qualitative view of how the primary narrative surrounding the investment aspects of crypto evolved in 2019. From our perspective, 2019 saw a significant uptick amongst both the mainstream media and traditional Wall Street analysts in discussing crypto as a ‘safe’ asset and a new form of ‘digital gold.’ That messaging appears to have resonated with the financial advisor community.

Despite this seemingly good news, many still consider digital assets to be too “iffy” when it comes to investment promise. The report suggests that about 56 percent of working financial advisors still cite “regulatory concerns” when discussing why their clients should not invest in digital currencies. About 43 percent of advisors say that such assets are still “too volatile,” while 41 percent fully admit that they have no clue regarding how digital assets work.

Not Everyone Is Convinced

In addition, nearly 40 percent are turned off by the idea that bitcoin exchange-traded funds (ETFs) and similar products do not yet exist in the market, though that could change sometime this year according to Tom Lydon, the CEO of ETF Trends.

About 34 percent say they’re worried about cyberattacks in the future.

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