Financial advisers are considering increasing their allocation to Bitcoin (BTC) due to the changing macroeconomic environment and the expected impact on supply and demand. Historically, advisers have allocated between 1% and 5% of a portfolio to cryptocurrency, but more are now looking to hedge against rising inflation, economic uncertainty, and geopolitical conflicts. About two-thirds of asset allocators are thinking of increasing their allocation to 5% or more, with some considering entering the market for the first time. The launch of a spot Bitcoin ETF could make advisers more comfortable with allocating to crypto. However, a 5% allocation can have minimal impact on portfolio volatility but a significant impact on risk-adjusted returns. Advertisers see Bitcoin as a compelling opportunity for alpha in client portfolios.

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