Gaining recognition of new investment opportunities in financial markets is one thing. Getting investors (especially financial advisors) to actually consider opportunities in any new sector is quite another. So, it seems that financial advisors have “discovered” digital assets and cryptocurrencies. The leading provider of cryptoasset index and beta funds (Bitwise Asset Management) in conjunction with ETF Trends recently completed a survey of how financial advisors view cryptoassets. Not surprisingly, according to the survey almost 80% of advisors have fielded questions from clients (and potential clients) about crypto assets and investment opportunities. But even though client interest is increasing advisors allocating or thinking about digital assets has only gone from 9% to 22% over the last year. Looks like a lot of education needs to be done. Also, remember, ETFs were once a “newfangled” idea too. Read more below.
Bill Taylor/Fintek Capital
“Cryptocurrency is an up-and-coming market, and financial advisors are taking a closer look at the opportunities the new asset may present.
Bitwise Asset Management, the leading provider of cryptoasset index and beta funds, and ETF Trends, recently released the findings of the inaugural Bitwise/ETF Trends Survey of Financial Advisor Attitudes Towards Cryptoassets.
“First of all, almost eighty percent of advisors had received questions from clients about crypto in the past year – that’s really important. If you have clients coming to you and asking, ‘Should I invest? What’s this all about?’ you need to have answers,” Matt Hougan, Global Head of Research, Bitwise Asset Management, said at Inside ETFs 2019.
“Also interesting, the percentage of advisors allocating or thinking about allocating to crypto was going from nine percent last year to twenty-two percent – that’s counterintuitive,” he added.
While cryptocurrencies took a hit in 2018, the volatility, while painful, is fairly typical of this nascent asset class. For example, during the June 2011 through February 2013 cycle, cryptoassets plunged 93%. From the April through November months of 2013, cryptos declined 70%. From December 2013 through February 2015, cryptos plummeted 83%…”