Published: 05.04.2022
Article reading time:
2 minutes.
The consulting agency Coalition Greenwich reports that, despite the popularity of crypto assets, more than 70% of financial experts do not know how to offer such products.
Coalition Greenwich has flagged a report stating that out of 600 financial advisors surveyed, only 15% offer crypto and blockchain-related products to retail investors.
More than 30% of respondents said that their company policy does not allow offering crypto assets and similar products. Another 26% of respondents explained that such products are not suitable for their customers.
Among those surveyed, 15% admitted that they did not expect such requests until 2023. At the same time, 13% of respondents said that they lack the tools to develop a cryptocurrency strategy suitable for retail investors. The authors of the report cautioned that the total does not add up to 100% due to rounding.
The report says that in the past year, financial advisors have seen investor demand for crypto-currency products as a means of saving money for personal retirement. The authors of the report state that numerous companies such as Bitcoin IRA, AltoIRA, iTrustCapital and Coin IRA are currently offering services to create individual retirement insurance for crypto investors. Coalition Greenwich believes that mass payrolls in bitcoin are a thing of the distant future.
According to the authors of the report, the absence of exchange-traded instruments with exposure to cryptocurrencies may be due to the absence of spot exchange-traded funds (ETFs) for bitcoin, which the US Securities and Exchange Commission (SEC) has not yet approved. About 80% of financial advisers supported the launch of spot ETFs for bitcoin and other stock indices that track cryptocurrency.
“Such an ETF would likely bring in billions of dollars from Bitcoin retail investors, all those currently on the sidelines. An SEC-approved Bitcoin spot ETF will allow 32% of financial advisors to offer cryptocurrencies in asset allocation strategies when appropriate,” the authors of the study say.
The authors of the report emphasize that clearer rules, regulated investment vehicles and technologies that provide easier access to crypto-currency products are likely to create the basis for an increase in the distribution of crypto-assets in 2023.
In February, a study by Natixis Investment Managers found that two-thirds of American investment professionals believe that private investors do not need cryptocurrencies.
Source: Bits
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