Working in the crypto world, it seems as if the only thing I talk about these days—in my personal and professional life—is where the price of bitcoin is going. And for good reason. After being a relatively obscure asset class for years, it burst into the mainstream in late 2017.
According to the CoinDesk Bitcoin Price Index, Bitcoin started 2017 crossing $1,000. Fast forward nearly a year to December 17 and the price reached a high of $19,783.21.
It’s likely during this run-up that many of your clients first started asking you questions, such as:
- What is bitcoin?
- How does it work?
- What is bitcoin mining?
- What’s an ICO?
- My nephew told me about this new coin. Should I buy?
- How do I buy?
And the list goes on…
In conversations with financial advisors, we’ve heard these and many other questions. But we’ve also heard—and seen—many advisors take the stance that the asset is a scam, ignore it, and move on.
Your clients aren’t taking this stance, though. They are moving forward because they’re interested and see opportunity. And while there has certainly been a Wild West ethos around crypto, the asset is clearly growing up and becoming more legitimate.
Consider the news over the past six months:
- TD Ameritrade backed a newly launched crypto exchange
- Northern Trust created new tools to help traditional hedge funds invest
- Yale invested in a crypto hedge fund
- Intercontinental Exchange is launching a new company, Bakkt, which is creating a futures product that settles in bitcoin
And the biggest news of the year happened only a couple weeks ago when Fidelity, with total assets under administration of $6.8 billion, announced that it was launching a crypto trading platform specifically for institutional investors.
With these major financial institutions jumping head first into crypto, it’s become increasingly difficult to stick to the “this is a scam” and “this is all going to zero” talking points.
We’re beginning to see advisors and wealth managers begin to evolve their approach and outlook on the asset class.
Ric Edelman, chairman, and co-founder of Edelman Financial Services, a registered investment advisor with $22 billion in assets under management told CNBC:
“I’m bullish on it because Bitcoin is now ten years old. It’s a $200 billion market in crypto total, Bitcoin is about 40% of that. Clearly, it’s here to stay. Financial advisors, I’m discovering, really don’t know much about it, no more than their clients do. Advisors can’t effectively give advice to their clients that their clients need.”
And it’s understandable why advisors aren’t recommending crypto with the present regulatory uncertainty. At some point, that’ll change. And the smart financial advisors will have a head start on their competitors.
But with the amount of information online, where can you go to get the right knowledge so you’re able to help your clients when the time comes?
CoinDesk is the world’s leading media brand in the world, focused exclusively on covering the evolution of the blockchain and crypto asset space. We offer a couple of ways to learn about the asset class.
The first is with our newsletter, Institutional Crypto. This is a free, weekly newsletter that offers a deep dive into the most important news of the week.
But we also feel that it is helpful for people to get into a room and ask their questions about crypto.
That’s why, on November 27th, we are hosting Consensus: Invest in New York City, an event custom built for professionals who manage client money.
We are bringing together some of the smartest investors from traditional Wall Street firms to leading crypto asset managers, offering unique insight on how to analyze these assets and think about where they fit when building a portfolio.
One panel, in particular, that will help advisors is: Wealth Managers Wrangle Crypto
Josh Brown, CEO of Ritholtz Wealth Management, will lead a panel with Tyrone Ross, Managing Partner of NobleBridge Wealth Partners; Marc Casady, General Partner of Vestigo Ventures; and Ari Paul, Chief Investment Office & Managing Partner of BlockTower, to discuss this very topic.
They’ll be sharing their insights on portfolio allocations, crypto economics, tools they need to help them do their jobs, and how to speak intelligently about this new asset class.
Because it is our north star to help educate investors about this new space, we are offering 50 free passes for advisors to come to Consensus: Invest on November 27th. After that, you’ll still be able to save $400 on your ticket to the event.
We are bringing together a wide variety of speakers, on top of the ones above, to talk about the asset class in more detail:
- Jay Clayton, Chairman of the U.S. Securities and Exchange Commission
- Dr. Mohamed A. El-Erian, Chief Economic Advisor at Allianz
- Glenn Hutchins, Chairman of North Island & Co-Founder of Silver Lake
- Bart Smith, Head of Digital Asset & Co-head of the ETF Group at Susquehanna International Group
- Michael Sonnenshein, Managing Director at Grayscale Investments
- Andrew Ross Sorkin, Columnist/Editor at The New York Times
- Mark W. Yusko, Chief Executive OFficer & Chief Investment Office at Morgan Creek Capital Management
- And so many more…
If you’re getting questions from your clients and you want to be able to answer intelligently, join us in New York City on November 27th. You’ll meet leading analysts in the space and learn about what tools are available for you to make decisions with your clients.
Register with the code FAMag400 or click here
to get your discounted ticket to Consensus: Invest.