Advisors Remain Divided On Crypto, But SEC Approvals, Demand Are Shifting Views

The rise of cryptocurrencies and the new administration’s friendliness toward digital assets have left advisors deeply conflicted about the asset class, a new survey by CoinShares reveals.

On the one hand, 62% of advisors say recommending Bitcoin and other cryptocurrencies goes against their fiduciary duties, and half think doing so would make colleagues think less of them.

On the other hand, 85% of advisors say their firm’s views on digital assets have changed since President Donald Trump won re-election, and 79% agree that, with more and more clients putting money into cryptocurrencies, the role of advisors is becoming to manage the risk that poses for clients.

Squaring this circle will require more information and education about digital assets. Over 80% of surveyed advisors were willing to spend money on cryptocurrency education but wanted that information to be independent. That excludes crypto exchanges, while many “crypto-native” educational resources are difficult to access for those unfamiliar with the space.

By the way, for independent news on all things cryptocurrency and digital assets, check out Benzinga’s own crypto news right here.

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In addition to education, new regulations seem set to improve advisors’ views on digital assets. In the CoinShares survey, 88% of advisors said the SEC’s recent approval of Bitcoin and Ethereum ETFs made them more positive about cryptocurrencies, and almost two-thirds said SEC approval was in the top three factors that most determined whether they felt it was appropriate to recommend cryptocurrency investments.

The new administration’s much more crypto-friendly stance suggests the SEC will be approving more digital asset funds, and faster, giving advisors a wider variety of options to choose from when building cryptocurrency portfolios for their clients.

Given these trends and the rising demand for cryptocurrencies—particularly among younger investors whom advisors must attract to grow their businesses—advisors can get ahead by exploring digital assets now. By understanding the strengths and risks of this expanding market, they can position themselves ahead of the competition.

To see how one prominent, crypto-focused advisor handles this, check out Benzinga’s interview series with him here and here.

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