U.S. Financial Advisors Embrace Crypto ETFs Amid Growing Institutional Support

Financial advisors across the U.S. are showing growing confidence in crypto exchange-traded funds (ETFs), with 57% planning to increase their crypto ETF allocations this year, according to a TMX VettaFi survey presented at the Exchange conference in Las Vegas. Another 42% intend to maintain their current exposure, while just 1% plan to reduce it—signaling a strong institutional shift toward crypto investment products.

TMX VettaFi’s Todd Rosenbluth and Cinthia Murphy emphasized how crypto has become an essential part of advisory conversations, with Murphy noting, “There’s no advisor that can’t at least hold a basic conversation in crypto.” This marks a significant change from the previous year, when reputational risk was a primary concern.

Following the U.S. SEC’s approval of spot Bitcoin ETFs in January 2024, the industry has witnessed increased regulatory clarity. The Trump administration’s pro-crypto stance has also contributed to broader institutional adoption, as both the SEC and CFTC have adopted more supportive policies.

Advisors are especially interested in crypto equity ETFs, which invest in companies with crypto exposure like MicroStrategy (MSTR) and Tesla. MSTR stock has surged over 100% since Trump took office, highlighting the appeal of crypto-linked equities.

Additionally, 22% of respondents are eyeing spot crypto ETFs, such as those for Bitcoin (BTC) and Ethereum (ETH), while 19% favor multi-token crypto funds. New ETF products continue to emerge, including index-based and managed funds offering downside protection. Proposals for spot ETFs tied to Solana (SOL), XRP, and Litecoin (LTC) are also awaiting SEC review.

With interest and product variety on the rise, advisors are urged to deepen their crypto knowledge to stay ahead in this rapidly evolving space.