Wealth Managers Warm Up to Crypto, But Regulatory Uncertainty Remains

Wealth managers are increasingly considering adding cryptocurrency to their portfolios. A recent survey by Bitwise found that 60% of participants plan to allocate money to crypto within the next year, despite 67% currently having no exposure.

The trend is driven in part by the growing popularity of Exchange-Traded Products (ETPs), which offer a more familiar and transparent way for institutional investors to access digital assets. According to The Nickel Digital study, 55% of respondents are likely to use crypto ETPs for the first time within two years.

However, regulatory uncertainty remains a significant concern, with 52% of respondents citing it as an obstacle. Market and custody risks also pose challenges, with 44% and 40% respectively highlighting these concerns.