While financial advisers continue flocking to exchange traded funds, data suggests they are not yet enthusiastic about cryptocurrencies.
“This year marks the fourth consecutive year that ETFs are the preferred investment vehicle among advisers, with 87 percent of financial advisers surveyed currently using or recommending ETFs with their clients—the most popular investment vehicle among 20 options, according to a new survey by the Financial Planning Association (FPA), the Journal of Financial Planning, and the FPA Research and Practice Institute,” reports Traders Magazine.
Recent data points indicate many of the participants in the relatively new digital currency market are short-term speculators, not long-term investors. That factor may be keeping some money managers away from cryptocurrencies.
“When asked what they think of cryptocurrencies as an investment, just two-percent of advisers said they are a viable investment option that has a place in a portfolio,” according to Traders Magazine.
The 2018 Trends in Investing Survey polled 265 advisers across various models and strategies in April and May.
Bitcoin does not lack for supporters as there have been plenty of bullish calls on the cryptocurrency in recent weeks. Some crypto market observers have opined bitcoin could reach new highs this year, but those are just projections.