Cryptocurrency and the Digital Advice Opportunity

Here’s the investment landscape related to cryptocurrency: Many advised investors are trading it, but they’re largely using third-party retail brokers and crypto exchanges, and this represents a lost opportunity for traditional wealth managers. Javelin Strategy & Research data shows that nearly 70% of advised investors trading in crypto allocate at least 10% of their portfolio to the digital currency. But only 12% of advisors use digital assets, while wealth managers en masse wait for regulatory clarity before they engage clients. This wait-and-see posture gets in the way of holistically engaging and managing these investor portfolios.

Advisors that can educate themselves will have an advantage in attracting new clients and retaining existing ones, despite the opaque regulatory environment. Engaging clients with cryptocurrency presents an opportunity for wealth managers to connect with younger, more affluent, and digitally-savvy investors. 

Key questions discussed in this report:

• What platforms are advised cryptocurrency investors using? 
• What are the demographics of advised crypto investors?
• How can wealth managers capitalize on advised investor demand for crypto?

Companies Mentioned:

Addepar, AdvisorPeak, Apex, Bank of America, Binance, BlackRock, BlockFi, Certified Digital Asset Advisor, CEX.IO, Charles Schwab, Coinbase, Coinmama, Crypto.com, Eaglebrook Advisors, Envestnet, eToro, Facebook, FTX, Gemini, Grayscale, HeightZero, Interactive Brokers, Kraken, LinkedIn, Morgan Stanley, Onramp, Orion, Pinterest, Robinhood, Rubicon Crypto, TD Ameritrade, Tradestation, Twitter, YouTube