Advisors Flock to Crypto ETFs as Regulatory Risks Fade

Crypto ETFs Gaining Massive Popularity Among US Advisors as Reputational Risk Gone

March 24, 2025 - The popularity of cryptocurrency exchange-traded funds (ETFs) among US financial advisors is surging, with many firms now embracing the investment products as a way to diversify client portfolios and capitalize on the growing demand for digital assets.

According to a recent survey by investment research firm, Cerulli Associates, nearly 40% of US financial advisors reported an increase in client interest in crypto ETFs over the past year, with 25% stating that they now offer these products to their clients.

The shift in sentiment comes as the reputational risks associated with crypto investments have largely dissipated, said Michael L. McNeilly, managing director of Cerulli's wealth management division. "Advisors have become more comfortable with the idea of offering crypto ETFs to their clients, and many are now seeing the benefits of diversifying their portfolios with these products," he said.

Crypto ETFs, which track the price of specific cryptocurrencies such as Bitcoin or Ethereum, have gained popularity in recent years as more mainstream investors look to tap into the growing market for digital assets. The products offer a way for investors to gain exposure to the cryptocurrency market without having to buy and hold individual coins, which can be complex and risky.

The surge in popularity among US advisors is being driven by a range of factors, including the increasing mainstream acceptance of cryptocurrency, the growing demand for alternative investment products, and the ease with which crypto ETFs can be integrated into traditional investment portfolios.

"Advisors are looking for ways to differentiate themselves and offer their clients something new and exciting, and crypto ETFs fit the bill," said McNeilly. "We're seeing a lot of interest in these products, and we expect that trend to continue as more investors look to diversify their portfolios and take advantage of the growth potential of the cryptocurrency market."