Growing Adoption of Crypto Investments Among Financial Advisors: Trends and Warnings for 2025

Financial Advisors Embrace Crypto Amid Caution from Merrill Lynch

In a notable shift within the financial advisory landscape, a recent survey reveals that 32% of financial advisors invested in cryptocurrencies for client accounts in 2025, a significant increase from 22% in 2024. This trend marks the highest allocation of crypto assets in the eight-year history of the Bitwise/VettaFi 2026 Benchmark Survey of Financial Advisor Attitudes Toward Crypto Assets, which gathered insights from 299 advisors across various business models.

As retail investors increasingly demand exposure to digital currencies, financial advisors are navigating a complex duality: satisfying client interest in high-risk assets while adhering to traditional standards of care. The rise in crypto investments reflects a growing acceptance of digital assets, with 56% of advisors reporting personal ownership of cryptocurrencies—also the highest level since the survey’s inception in 2018.

Institutional access to cryptocurrencies is expanding as well. The survey indicates that 42% of advisors now have the capability to purchase crypto for client accounts, a notable jump from 35% in 2024 and 19% in 2023. This trend is echoed by major financial institutions, such as Bank of America, which recently announced plans to allow a 1% to 4% advisor-endorsed allocation to select digital assets for clients on its Merrill and Merrill Edge platforms.

However, this growing enthusiasm comes with a caveat. Merrill Lynch has issued a stark warning to both advisors and clients regarding the risks associated with cryptocurrency investments. In a recent disclosure filed with the Securities and Exchange Commission, the firm cautioned that “the risks related to an investment in crypto assets are significant.” The advisory highlighted the speculative nature of cryptocurrencies, noting that their prices can be extremely volatile and influenced by external factors such as media coverage and social media trends.

Merrill Lynch’s updated wrap fee program brochure emphasizes that investors could potentially lose their entire investment in a short period, particularly due to the concentrated ownership of some crypto assets, which can lead to sudden price declines.

As the financial advisory industry grapples with the complexities of crypto investing, the challenge remains: how to balance client demand for digital assets with the imperative to manage risk effectively. With the landscape evolving rapidly, advisors are tasked with not only navigating this high-stakes environment but also educating clients about the inherent risks of investing in cryptocurrencies.

As the year unfolds, it will be crucial for both advisors and investors to stay informed and cautious in this dynamic and often unpredictable market.