Study: US Financial Advisors Project a 60% Increase in Crypto Holding Clients
A new survey has revealed that the number of advisors who are currently providing advice to crypto-holding clients will double by 2022, or 20% to 44%.
Only four percent expect the number of crypto holding clients to decrease
A new study found that the number of U.S. financial advisors who advise clients about crypto holdings will double by 2022. The study, which was conducted by wealth management experts in the U.S. found that the predicted increase in advisors to 44% coincides with the expectation that clients will become crypto-holders (about 33%).
According to the survey data, 60% of financial advisors believe that crypto holding clients will increase. This is evident from the data collected from the 153 participants. The study results show that clients are not declining in demand for cryptocurrency, with only 4% of respondents anticipating a decrease.
Other competitive threats
The findings suggest that cryptocurrencies are now a popular topic in investment circles. According to the study report:
Four out of ten banks do not expect an increase in traditional credit card investment with rewards and loyalty features in the next three year. This could be due to other threats to credit cards such as digital payment options like Venmo or PayPal, and initiatives by Federal Reserve.
One in four banks sees a potential threat from consumers banking in the U.S. Federal Reserve initiatives, such as FedNow real time payments and alternative wires and ACH transfer. Another possible threat is the creation of a digital dollar currency.
The study found that big tech companies could be entering the financial services sector, which is a major concern for insurers and banks. The data shows that about six in ten digital insurances fear that these forays could pose a threat to their business.
However, nearly half of banks (or 47%) expect Big Tech will become a major competitor in three years. The results also reveal that 64% of regional banks are the most concerned.
