Cryptocurrencies like Bitcoin (BTC) are increasingly being used by financial advisers as a hedge against inflation, underscoring the dramatic shift in institutional sentiment toward digital assets.
The “Bitwise/ETF Trends 2021 Benchmark Survey” reveals that 9.4% of financial advisers were allocating to cryptocurrencies in 2020 — an increase of 49% from the previous year. Of the advisers not currently allocating to crypto, 17% said they will either “definitely” or “probably” gain exposure in 2021.
Advisers are buying crypto for many reasons, chief among them being its potential hedge against inflation. As Bitwise noted, 25% of advisers cited inflation-hedging as one of the most attractive features of the asset class. That’s up from just 9% the year before.
The report said:
“This year’s survey saw a sharp uptick in advisors highlighting crypto’s ‘high potential returns’ and its role in ‘inflation hedging’ as key attractive features of the asset class.”
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