ETF Prime: Rosenbluth on Bitwise/VettaFi Annual Crypto Survey

On this week’s episode of ETF Prime, Todd Rosenbluth, head of research at VettaFi, joined host Nate Geraci. The two discussed the results of the annual crypto advisor sentiment survey conducted by Bitwise and VetttaFi, as well as Geraci’s 2025 predictions. Later, Brian Jacobs, investment strategist and portfolio manager at Aptus Capital Advisors, talks their risk-managed ETFs.The Changing Tides of Crypto SentimentEach year, Bitwise Asset Management conducts an advisor crypto sentiment survey alongside VettaFi. This year marks the seventh year for the survey and showcased a significant sentiment shift in favor of crypto. Geraci shared that of advisors surveyed, 96% reported their clients inquiring about crypto in the last 12 months. “Some advisors are skeptical about adding crypto to a client’s portfolio because of volatility or the challenges of assessing fair value,” Rosenbluth elaborated. That said, regardless of how advisors feel regarding crypto, they now need at least some level of education on cryptocurrencies. “Clients are asking questions — advisors need to some answers or be able to point people to the experts that do.” The November presidential election results proved a major turning point for over half of advisors. Geraci noted that 56% of advisors surveyed reported a higher likelihood of crypto investing in the next year because of the election. Among potential reasons to bolster growing confidence, the incoming SEC Chair, Paul Atkins, takes a more favorable approach to crypto compared to current Chair Gary Gensler. The creation of a crypto advisory council could also prove favorable for crypto investors. That said, it remains to be seen what actual policy the incoming administration will follow through on.The Crypto Strategies Advisors Look to in 2025Rosenbluth was quick to point out that more advisors at least consider crypto investing now than in previous years. In 2022, 44% of advisors surveyed responded N/A to how they planned to invest in crypto in the upcoming year. “I interpret that as 44% really are not interested in allocating to crypto assets,” Rosenbluth said. “Fast forward to when we did the survey at the end of 2024, just 11% had N/A.” Advisors still tend to err on the side of the familiar when it comes to crypto investing. 25% reported a likelihood to invest in crypto equity ETFs, while 22% look to spot bitcoin/cryptocurrency ETFs this year for potential. Those advisors with an eye to crypto equities might consider funds like the Amplify Transformational Data Sharing ETF (BLOK B-) while those looking for spot bitcoin ETFs may look to funds like the iShares Bitcoin Trust ETF (IBIT C+). Rosenbluth noted the higher preference for crypto equity ETFs over spot cryptocurrency ETFs may be due to lack of availability of the latter through most major platforms. The two also discussed specific types of strategies advisors reported interest in. These included buffered strategies like those Calamos and Innovator will launch soon, and income strategies like the NEOS Bitcoin High Income ETF (BTCI).Geraci’s Predictions for 2025The two also touched on Geraci’s five ETF predictions for this year. In 2025, Geraci believes the iShares Core S&P 500 ETF (IVV A) or the Vanguard S&P 500 ETF (VOO A) will cut fees from their current 0.03% in a bid to gain market share over the SPDR S&P 500 ETF Trust (SPY A). “I agree,” Rosenbluth said. “I think that iShares is going to be more aggressive in 2025 with IVV.” Rosenbluth cites iShares’s history of proactive fee reductions for why they will lead this year. Another high point for the year will include broader adoption of crypto ETFs, and more launches and spot ETFs beyond just bitcoin. On the other hand, Geraci predicts investors hopeful for private credit ETFs will have to sit out another year. Rounding out the top five predictions, Geraci believes 351 exchanges become mainstream while at least one leveraged single stock ETF implodes.Aptus’ Jacobs: “Capture More Upside Without More Risk”Next up, Brian Jacobs, investment strategist and portfolio manager at Aptus Capital Advisors, joined Geraci to talk about the firm’s active, risk-managed ETFs. Aptus offers a number of ETFs, including its largest, the Aptus Collared Investment Opportunity ETF (ACIO A-) with over $1.6 billion in AUM. Many of the funds seek to offer similar outcomes to a traditional 60/40 portfolio but with more stock and less bond exposure. “What we’re really trying to do as a firm is really provide investors tools that can change the outcome for their clients,” said Jacobs. “What we really emphasize is the ability to capture more upside without more risk.” ACIO seeks a similar outcome to buffered strategies in providing equity exposure while minimizing risk. However, the fund is structured in a fundamentally different way from buffered strategies. While buffered strategies constrain performance expectations to a year time period, ACIO isn’t limited to a particular time period. This allows for the managers to capitalize on unfolding market discrepancies and opportunities, Jacobs explained. “The end outcome of ACIO, again if you compare it to a buffered strategy for example, would be something that ideally has more upside,” Jacobs noted. Additionally it may offer “better protection over the long-term,” but with a less certain outcome over a 12-month period. The firm also offers funds like the Aptus Defined Risk ETF (DRSK A) and Aptus Large Cap Upside ETF (UPSD).Listen to the Entire Episode of ETF Prime, Featuring Todd Rosenbluth & Brian Jacbos:For more ETF Prime podcast episodes, visit our ETF Prime Channel.