More than 15% of financial consultants are ready to allocate money for the purchase of cryptocurrency in 2021. And every fifth expert will increase the amount of investment in digital coins.
Investors expect bitcoin price to rise to $ 100 thousand
In 2021, the number of retail and institutional investments may increase significantly. This is evidenced by the data of the analytical report of the Bitwise Asset Management company. More than 1,000 financial advisors took part in the company’s latest study aimed at examining the investment potential of the crypto market.
Survey respondents included independent registered investment advisors, broker and dealer representatives, financial planners, and electronic agency representatives from across the United States.
According to the results obtained, more than 15% of financial advisers are likely to allocate funds for the purchase of cryptocurrency. And every fifth financial consultant who has previously invested in digital coins is ready to increase the amount of investments in bitcoin, given the growth of its value.
If we talk about the main reasons for choosing Bitcoin as an investment asset, the respondents identified the following features:
- uncorrelated profitability attracts 54% of financial advisors;
- 25% of respondents are ready to use bitcoin to hedge inflation;
Also, 81% of surveyed financial advisors admitted to having received questions from their clients regarding investments in bitcoin. For example, the same indicator in 2019 did not exceed 76%.
“Financial advisors are increasingly looking for alternative investment opportunities. We have also seen a steady increase in interest in cryptocurrency from clients of financial advisors over the past three years. I see no reason to change this next year, ”said Tom Lydon, founder and CEO of ETF Trends.
All hopes for bitcoin: investors expect a sharp jump in prices
Also, the Bitwise Asset Management report says that investors are ready to actively invest in bitcoin, as they expect a rapid rise in the price of the asset.
“15% of those surveyed expect the price of bitcoin to exceed $ 100,000 within five years. For example, this figure in 2019 was only 4%. Meanwhile, the percentage of those expected to drop the price of bitcoin to zero has halved: from 8% to 4% in 2020. In our 2019 survey, 14% of surveyed consultants believed the price would drop to zero, ”the document says.
The example of other investors contributed to the change in attitudes towards bitcoin. In 2020, several large corporate and retail investors at once invested in cryptocurrency. The largest investor of the past year was Grayscale, which today manages over $ 9 billion in assets.
Also in 2020, the investment company MicroStrategy acquired a total of over 38,000 BTC.
Earlier, the head of institutional investment at Coinbase, Brett Tejepol, said in an interview with Heidrick & Struggles International that corporate investments in bitcoin on the Coinbase exchange increased 3.5 times during the year and exceeded $ 20 billion. At the same time, more than $ 14 billion were transferred to exchange, starting in April of this year, that is, at the height of the crisis caused by the coronavirus epidemic.
We will remind that earlier the co-founder of Fundstrat Global Advisors Tom Lee predicted the growth of the cost of bitcoin to $ 90 – 100 thousand by the end of 2021.