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

Core Insights - The Q3 2024 Advisor Pulse Survey indicates a significant increase in the number of financial advisors recommending digital assets, with 19% reporting that over half of their clients own such assets, up from 15% in Q2 2024 [1][2] - The survey, which included 619 financial professionals, shows a growing trend in crypto investment recommendations and allocations, with only 3% of advisors reporting no crypto ownership among clients, down from 8% in the previous quarter [2] Group 1: Advisor Recommendations - 70% of advisors have recommended crypto to at least 10% of their clients, with the most common recommendation being a 2% allocation by 26% of advisors, followed by a 5% allocation by 22% [3] - Among advisors not currently recommending crypto, 56% plan to do so, with 28% intending to start within the next six months [3] - 30% of advisors planning future allocations to crypto anticipate recommending 5% allocations, while 22% plan for 2% allocations [3] Group 2: Industry Trends - The data reflects a clear shift in the perception of digital assets among financial advisors, indicating increased confidence in this asset class [3] - The partnership between DACFP and Franklin Templeton aims to provide educational resources to help advisors stay informed about the evolving digital asset market [3] Group 3: Survey Methodology - The survey was conducted between July and September 2024, with 83% of respondents having over 10 years of experience in the financial services industry [4] - A significant portion of the advisors surveyed primarily serve clients with assets ranging from $500,000 to$3.5 million, with 11% serving clients with assets exceeding $3.5 million [4]