Digital Asset Allocations Continue to Grow in Client Portfolios, DACFP Survey Finds

Rhea-AI Summary

Financial advisors are increasingly incorporating digital assets into client portfolios, according to the Q3 2024 Advisor Pulse Survey by DACFP and Franklin Templeton Digital Assets. 19% of advisors report that over half their clients own digital assets, up from 15% in Q2 2024, while those reporting no client crypto ownership dropped to 3% from 8%.

Key findings show that 70% of advisors have recommended crypto to 10% or more of clients, with 26% recommending 2% allocations and 22% suggesting 5% allocations. Among advisors not yet recommending crypto, 56% plan to do so, with half of those planning to begin within six months. The survey included 619 financial professionals, with 83% having over 10 years of industry experience.

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Q3 2024 Advisor Pulse Survey by DACFP and Franklin Templeton Digital Assets reveals that 19% of advisors report that more than half of their clients own digital assets

GREAT FALLS, Va., Nov. 19, 2024 /PRNewswire/ -- Nineteen percent (19%) of financial advisors say that more than half of their clients have made allocations to digital assets in their portfolios, according to the Q3 2024 Advisor Pulse Survey, sponsored by Franklin Templeton Digital Assets and conducted by the Digital Assets Council of Financial Professionals (DACFP).

The comprehensive survey of 619 financial professionals reveals continued acceleration in crypto investment recommendations and allocations. In the Q2 2024 survey, only 15% of advisors said that more than half of their clients owned crypto. Meanwhile, advisors reporting no crypto ownership among clients has dropped to just 3%, down from 8% Q2.

"The data show a clear shift in how financial advisors view digital assets as part of their clients' portfolios," said DACFP Founder Ric Edelman, CBDA. "More advisors are recommending crypto, and they're increasing their recommended allocations. Both are signs of growing confidence in this asset class."

Key findings include:

• 70% of advisors have recommended crypto to 10% or more of their clients
• The most common recommendation is a 2% allocation (by 26% of advisors), followed by a 5% allocation (22% of advisors)
• Among advisors not yet recommending crypto, 56% plan to do so, with more than half of them (28%) saying they'll begin within the next six months
• 30% of advisors who plan to allocate to crypto in the future anticipate recommending 5% allocations. Another 22% of advisors plan to recommend 2% allocations

"Digital assets are an increasingly important component of what we call portfolios of the future," said Sandy Kaul, Head of Franklin Innovation Research Strategies and Technology at Franklin Templeton. "With clients increasingly adding exposure to the asset class, advisors will need to continue to utilize educational resources that allow them to keep a strong pulse on the market as it evolves."

To support advisors in this rapidly evolving space, DACFP and Franklin Templeton have partnered to offer "Blockchain, Bitcoin, and Beyond," an educational course providing foundational knowledge for financial professionals looking to incorporate digital assets into their practice.

Methodology

The survey was conducted between July and September 2024, with 619 financial professionals participating. Of the respondents, 83% have more than 10 years of experience in the financial services industry, with 61% having 20+ years of experience. Sixty-one percent of respondents primarily serve clients with $500,000 to $3.5 million in assets, while 11% predominantly serve clients whose assets exceed $3.5 million. A third of the advisors surveyed manage more than $100 million in assets, with 5% managing over $500 million.

For detailed survey findings, visit https://dacfp.com/further-reading/.

About DACFP
Founded by Ric Edelman, the Digital Assets Council of Financial Professionals is the leading provider of crypto education. DACFP connects the financial services industry and digital assets communities with leading experts via live and online events, webinars, blogs and other educational content. Its flagship program, the Certified in Blockchain and Digital Assets^SM, is the first and largest certification program of its kind—an online self-study program featuring a world-class faculty and 18 Continuing Education credits. Thousands of financial professionals from 37 countries have enrolled.

About Franklin Templeton Digital Assets
Franklin Templeton Digital Assets has been active in the digital asset ecosystem since 2018, building blockchain-based technology solutions, developing a range of investment strategies, and running node validators. Franklin Templeton Digital Assets' dedicated digital assets research team leverages fundamental "tokenomic" analysis, insights from an embedded data science team, and deep industry connections to help inform product development and investment decisions. For more information, please visit Franklin Templeton Digital Assets and follow the team on X.

Franklin Templeton Digital Assets is a part of Franklin Resources, Inc. [NYSE: BEN], a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton's mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.6 trillion in assets under management as of September 30, 2024. For more information, please visit franklintempleton.com and follow us on LinkedIn, X and Facebook.

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SOURCE Digital Assets Council of Financial Professionals

FAQ

What percentage of financial advisors reported client digital asset ownership in Q3 2024?

19% of financial advisors reported that more than half of their clients owned digital assets in Q3 2024, up from 15% in Q2 2024.

What are the most common crypto allocation recommendations by advisors in 2024?

The most common recommendation is a 2% allocation (recommended by 26% of advisors), followed by a 5% allocation (recommended by 22% of advisors).

How many advisors plan to start recommending crypto to their clients?

56% of advisors not currently recommending crypto plan to do so, with 28% planning to begin within the next six months.

What percentage of advisors have recommended crypto to their clients in 2024?

70% of advisors have recommended crypto to 10% or more of their clients.