Bitwise released a report on TradFi Bitcoin adoption for 2025 available here.

Increased Crypto Adoption & Allocations:

Doubled Allocations: The percentage of advisors allocating to crypto in client accounts doubled year-over-year, reaching 22% in 2024, an all-time high for the survey. This is a substantial increase from 11% in 2023. "Twenty-two percent (22%) of advisors reported allocating to crypto in client accounts this past year. That’s double the rate in 2023 (11%) and an all-time high for the survey."

Intent to Increase: Among those already allocating to crypto, 99% plan to maintain or increase their exposure in 2025. "Ninety-nine percent (99%) of advisors who currently have an allocation to crypto in client accounts plan to either maintain or increase that exposure in 2025."

More Likely to Allocate: Even those who haven’t allocated to crypto are showing increased interest: 19% are "definitely" or "probably" planning to add exposure in 2025, more than double last year's 8%.

Strong Client Interest:

High Inquiry Rate: 96% of advisors received a question about crypto from clients in 2024, the highest rate ever recorded in the survey. This signifies that client interest in crypto is at a peak and underscores the need for advisors to be well-versed in the asset class. "Ninety-six percent (96%) of advisors received a question about crypto from clients last year."

Clients Investing Independently: 71% of advisors reported that "some" or "all" of their clients were investing in crypto on their own, outside of the advisory relationship. "Seventy-one percent (71%) of advisors said “some” or “all” of their clients were investing in crypto on their own." This represents a significant opportunity for advisors to integrate these holdings into client's overall wealth plans.

Evolving Preferences & Investment Vehicles:

Preference for Crypto Equity ETFs: When considering crypto exposure, the most popular choice among advisors is crypto equity ETFs (25%). This preference likely stems from the familiarity of the ETF structure and the ease of access it provides. "When asked what crypto exposure they were most interested in allocating to in 2025, crypto equity ETFs were the favorite among advisors."

Spot Crypto ETF Interest Surging: Interest in spot crypto ETFs is also increasing, with 22% of advisors choosing them. This growth is likely due to the recent approval and successful launches of Bitcoin and Ethereum ETFs.

ETFs Preferred Overall: 71% of advisors stated that exchange-traded funds are their preferred way to invest in crypto, demonstrating the appeal of this more traditional investment wrapper. "71% of advisors chose an exchange-traded fund as their preferred way to invest in crypto"

The Impact of the 2024 Election:

Increased Likelihood to Invest: The 2024 U.S. election results have had a positive impact on advisor attitudes toward crypto with 56% of advisors saying they were more likely to invest in crypto in 2025 as a result. "Fifty-six percent (56%) of advisors said they were more likely to invest in crypto in 2025 as a result of the election results."

Strategic Bitcoin Reserve: There is divided opinion on the possibility of the U.S. establishing a strategic bitcoin reserve in 2025 with 45% of advisors thinking it will happen and 55% thinking it will not.

Barriers to Crypto Adoption:

Regulatory Uncertainty: Despite a more favorable regulatory outlook, 50% of advisors still cite regulatory uncertainty as the top obstacle to future crypto investments. While this number is down from prior years (60-65%), it remains a major concern. "While 50% of advisors cited regulatory uncertainty as the top obstacle to future crypto investments, the figure dropped markedly from prior surveys".

Volatility: Volatility is still a significant concern, with 47% of advisors citing it as a barrier. While down from 2022 and 2021 (60% and 53% respectively), this indicates the need for volatility mitigation strategies.