Crypto is ‘Here to Stay’ but Financial Advisers are still Shunning Asset Class

financial advice cryptocurrency UK

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Cryptocurrencies are “here to stay” according to a panel of experts who met to discuss how financial advisers are failing to talk to clients about crypto.

Both Jason Gutherie, head of digital assets for fund managers WisdomTree, and Rufus Round, chief executive of digital asset trader GlobalBlock, agreed that crypto had moved into the mainstream and financial advisers needed to address this.

The pair were panelists on the latest FTAdviser in Focus podcast, which examined how advisers who shun cryptocurrencies risk alienating their clients and losing new business in the future.

The consensus among the group was that it was only a matter of time before the Financial Conduct Authority, the UK’s financial services regulator, allowed retail investors access to cryptocurrency through regulated financial products.

Investment trusts and exchange-traded funds (ETFs) were the most likely products to be made available to the wider public in the near future.

Financial advisers risking losing out in the long term

But despite the fact that crypto adoption is rapidly expanding, the group concluded that the majority of financial advisers are still failing to help clients who wish to add cryptocurrency to their portfolios.

As a result, they risk alienating their existing clients and potentially “lose out in the long-term” if they avoid talking crypto.

Mr Round said it was “easier to criticise a new technology than to embrace it” and that many financial advisers felt that crypto was a threat to their business because its fundamental ethos is decentralization, which meant cutting out intermediaries.

However, while this is true to an extent, Mr Round asserted that there was still a “strong role for advisers” in the long run, given the complexities surrounding cryptocurrencies, which are currently mostly unregulated in the UK and across the globe.

He warned that people “could get burned” if they’re forced to move outside the sphere of qualified financial advice in order to gain the exposure to cryptocurrency.

Financial advice cryptocurrency
An increasing number of people are looking for financial advice about cryptocurrency.

Financial advisers that offer cryptocurrency advice in the UK

If you’re looking to add cryptocurrency to your investment portfolio and want financial advice before you do so, your options are limited.

A Google search throws up dozens of results relating to the lack of regulated financial advice available to investors, but little in the way of direction when it comes to choosing a financial adviser in the UK.

There’s clearly a gaping hole in the market and existing financial advisers need to act quickly if they don’t want to miss out on a potentially lucrative source of business.

Consider that 2.3million people in the UK currently hold Bitcoin and other cryptocurrencies at a time when it’s still unregulated.

Financial advisers specialising in cryptocurrency are clearly thin on the ground, but it’s clear from the FTAdviser podcast that this needs to change as adoption continues to rise.

And crypto adoption could grow exponentially if the FCA approves mainstream crypto products for retail investors.

If you’re looking for financial advice regarding cryptocurrency it may be worthwhile calling a few of your local firms and asking them if they offer this service.

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Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice.

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