A new survey shows record-high cryptocurrency investments by financial advisors for clients, with 32% allocating to digital assets in 2025, up from 22% the previous year. While firms like Bank of America expand access to crypto, Merrill Lynch has issued stark warnings about the speculative nature of these assets. Advisors are increasingly optimistic, focusing on emerging themes like stablecoins and tokenization.
The eighth annual Bitwise/VettaFi 2026 Benchmark Survey of Financial Advisor Attitudes Toward Crypto Assets, based on responses from 299 advisors, reveals unprecedented adoption of digital currencies in client portfolios. In 2025, 32% of advisors invested client funds in crypto, the highest allocation in the survey's eight-year history. Personal ownership also hit a peak, with 56% of advisors holding crypto themselves since tracking began in 2018.
Access to crypto has improved significantly, with 42% of advisors now able to purchase it directly in client accounts, compared to 35% in 2024 and 19% in 2023. This rise stems from better platform access and custody solutions, enabling advisors to act on client demand more easily. Bank of America announced last month that it will allow advisors to recommend 1% to 4% allocations to certain digital assets starting early next year across its Merrill, Private Bank, and Merrill Edge platforms, expanding beyond just approved exchange-traded funds.
However, Merrill Lynch, part of Bank of America, has cautioned against the risks in a recent update to its Investment Advisory Program brochure filed with the Securities and Exchange Commission. "The risks related to an investment in crypto assets are significant," the filing states. It describes crypto as "highly speculative and have been in existence for only a short period of time," with demand driven by speculators seeking short-term profits influenced by media, tweets, or influencers. The document highlights extreme volatility, noting that prices can decline rapidly, potentially leading to total loss, and warns of concentrated ownership causing sudden drops.
Looking ahead to 2026, advisors are exploring beyond Bitcoin, which two-thirds expect to rise in value within a year, alongside optimism for Ethereum. Top themes include stablecoins and tokenization (30% interest), digital gold as a hedge against fiat debasement (22%), and crypto-related artificial intelligence (19%). "Crypto's future has always depended on what financial advisors think of it," said Matt Hougan, Bitwise chief investment officer. "They are trusted guides to millions of families and responsible for stewarding trillions of dollars in wealth. And in 2025, advisors embraced crypto like never before."
Barriers persist, including volatility, regulatory uncertainty, and firm restrictions, though regulatory concerns have eased. Notably, 99% of advisors with current client allocations plan to maintain or increase them this year, signaling sustained momentum driven by advancing regulation, institutional participation, and Bitcoin's price records.