So apparently, Trump's back in the White House and he brought a bunch of crypto consultants along for the ride. A recent survey conducted by Bitwise shows that financial consultants in the U.S. are getting a little more interested in cryptocurrencies after the election. What does it mean? Let's dive in.
Who's Investing?
According to the survey, 56% of U.S.-based financial consultants are now more likely to invest in crypto because of the election results. The study was done between November 14 and December 20 last year, asking around 430 financial advisors what they think about crypto, and it looks like the results are way more bullish than before.
For one thing, 22% of those surveyed said they would allocate crypto to client accounts in 2024, a big jump from 11% last year. And here's the kicker: 96% of wealth managers received client inquiries about crypto last year, and of those who already had some, 99% plan to maintain or increase that amount in 2025. The interest is definitely there.
What's Driving This Trend?
Why is this happening? Political leadership shapes investment strategies and market sentiment. It’s a multi-layered equation.
First, the regulatory environment plays a huge role. Political figures can influence the rules that govern crypto. Supportive politicians like Senator Lummis push for clarity and favorable frameworks, which institutional investors appreciate. Trump's vocal support has led to price surges, that's for sure.
Market sentiment is also affected. Candidates who support blockchain tech create an optimistic atmosphere, which attracts retail and institutional players. In Trump's case, he wants to make the U.S. the "Bitcoin capital of the world." That sentiment is palpable.
Then we have legislative impacts. The election's outcome can sway the makeup of Congress and what it does afterward. A Congress filled with crypto-friendly lawmakers can lead to pro-crypto legislation. The opposite holds true, too.
There’s bipartisan support for clearer regulations, but Republicans tend to favor less regulation, benefiting crypto. Democrats are more about protecting consumers through transparent regulations.
The crypto industry has also become a significant force in political spending. They’re basically trying to buy influence, supporting candidates who back a crypto-friendly environment. And then there’s the appointment of regulatory officials who support or oppose crypto, which can shift the landscape.
A Tough Road Ahead
Despite the increased interest, getting into crypto isn't easy. Only 35% of those surveyed said they can buy crypto in client accounts. That means two-thirds still can't offer their clients a piece of the action.
Bitwise believes that this gap will close as mainstream adoption increases in 2025, but who knows? Regulatory uncertainty is still a concern, but it’s easing. Fifty percent of those surveyed cited it as the primary obstacle to growth, down from 60-65% in previous surveys.
Bitwise has a very optimistic outlook, claiming that 2025 will be the "Golden Age of Crypto." We’ll have to see whether it’s the real deal or just another hot take from crypto enthusiasts.
