Major Investment Force Awakens As Financial Advisors Warm Up To Bitcoin

It appears that traditional financial advisors – ”who manage roughly half of all wealth in America” – are becoming increasingly enthusiastic about digital assets, such as Bitcoin (BTC).

In a piece published on accounting firm EisnerAmper LLP’s website by New York-based financial advisor Dara Albright, a number of developments were highlighted to show how traditional finance is in the process of merging with digital assets.

“What about financial advisors and wealth managers,” Albright asked in the article while adding “are they ready to embrace digital assets and start recommending this novel asset class to their clientele?”

She went on to answer her own question:

“Based on the enthusiasm at last week’s National LINC 2020, TD Ameritrade‘s annual conference for financial advisors, I’d say that the answer is a resounding yes,” Albright said, listing key takeaways from the conference such as:

  • “Bitcoin is the fifth-largest holding by millennials.”
  • “The benefits of a 1% bitcoin allocation far outweigh having no bitcoin allocation at all.”

(More than 1,800 registered investment advisors reportedly participated in the conference.)

“Bitcoin is making saving and investing sexy again,” Albright quoted Sunayna Tuteja, Head of Digital Assets at major U.S. brokerage TD Ameritrade. (In January, regulated derivatives exchange ErisX, backed by TD Ameritrade, launched bitcoin futures for small investors).

Also, according to the advisor, Mark Yusko, CEO of Morgan Creek Capital Management, reminded attendees of the event last week that “comfort is the enemy of profit, and that the greatest wealth is created when you believe in something before everyone else does.”

However, Albright stressed that “the most persuasive argument in favor of digital assets” was made by Ric Edelman, founder of Edelman Financial Engines and of the RIA Digital Assets Council, who reportedly said:

“The question you need to be asking yourself is not whether you think bitcoin is going higher, but rather do you think other people believe that it is.”

Meanwhile, Edelman, at a separate major conference in January, Inside ETFs, made it clear that he believes financial advisors shouldn’t ignore bitcoin and blockchain technology.

Financial advisors are often “fairly oblivious to blockchain” and “hesitant to invest client money in bitcoin,” but they shouldn’t be, Edelman was quoted as saying by ThinkAdvisor. He called open-source distributed ledgers “the most important innovation since the introduction of the magnetic strip.”

“Bitcoin is worthy of consideration in your portfolios,” Edelman reportedly said, while suggesting financial advisors invest 1% to 2% of client funds in bitcoin, as long as the client understands the technology, plans to hold it for several years and can accept strong volatility and even a total loss.

Meanwhile, a recent survey of financial advisors in the U.S. showed that “some legacy concerns about crypto” are “continuing to fade from view.” Only 6% of advisors believe that cryptocurrencies are a scam,” down from 11% last year. And 13% thought that “cryptocurrencies are in a bubble,” a drop from 2019’s figure of 19%. Moreover, the number of advisors allocating to crypto in client portfolios is expected to more than double in 2020, from 6% to 13%. Also, 76% of all surveyed financial advisors report receiving questions from clients on crypto in 2019.

38 thoughts on “Major Investment Force Awakens As Financial Advisors Warm Up To Bitcoin

  1. Thank you for sharing superb informations. Your web site is so cool. I am impressed by the details that you’ve on this website. It reveals how nicely you understand this subject. Bookmarked this web page, will come back for more articles. You, my friend, ROCK! I found just the information I already searched everywhere and simply couldn’t come across. What a perfect web site.

  2. I have to thank you for the efforts youve put in writing this website. Im hoping to view the thesame high-grade blog posts from you in the forward-thinking as well. In truth, your creative writing abilities has forced me to acquire my own site now

  3. Great blog here! Also your website loads up fast! What host are you using? Can I get your affiliate link to your host? I wish my site loaded up as fast as yours lol Storm Whittaker Liza

  4. You made some decent points there. I checked on the net for more info about the issue and found most individuals will go along with your views on this web site. Candra Adams Brok

  5. Hello there! I simply want to offer a big thumbs up for the fantastic details you have here on this article. I will certainly be returning to your blog for more quickly. Gillian Cobbie Katti

  6. whoah this blog is wonderful i like studying your articles. Keep up the great work! You recognize, lots of individuals are hunting round for this information, you could aid them greatly. | Tierney Bartel Samy

  7. Hi there. I found your blog by way of Google whilst looking for a comparable matter, your website came up. It appears great. I have bookmarked it in my google bookmarks to visit then. Catlin Hasheem Epps

  8. yes I feel the same way sometimes I guess you have to self reflect on things to get some answers. This is very helpful and encouraging. Jacquetta Winnie Connel

  9. Greetings! Very useful advice in this particular post! It is the little changes that make the most significant changes. Many thanks for sharing! Koral Jonathan Blase

  10. You made a number of fine points there. I did a search on the subject and found the majority of people will have the same opinion with your blog. Audy Anders Morrie

  11. I blog quite often and I really appreciate your information. Your article has really peaked my interest. I am going to book mark your website and keep checking for new details about once a week. I subscribed to your RSS feed too. Eilis Billie Keith

  12. Awesome write-up. I am a regular visitor of your web site and appreciate you taking the time to maintain the excellent site. I will be a regular visitor for a long time. Brenn Allen Fakieh

  13. I blog quite often and I genuinely appreciate your content. Your article has truly peaked my interest. I am going to bookmark your site and keep checking for new information about once per week. I subscribed to your Feed too. Juditha Bail Zulema

  14. Excellent read, I just passed this onto a colleague who was doing some research on that. And he just bought me lunch as I found it for him smile So let me rephrase that: Thanks for lunch! Melita Gav Kassaraba

  15. I must express my gratitude for your kindness giving support to individuals that should have assistance with this particular idea. Your very own commitment to passing the message all through had been amazingly functional and have always helped regular people like me to get to their dreams. Your informative guidelines implies a whole lot a person like me and far more to my office workers. With thanks; from each one of us. Cacilie Archie Dedrick

  16. Hi there! I just would like to offer you a huge thumbs up for the great info you have got here on this post. I am returning to your site for more soon. Belvia Chev Jarrad

  17. Hi! I simply wish to give you a huge thumbs up for the excellent info you have here on this post. I am coming back to your site for more soon. Lonee Thorstein Junie

  18. Hey there! I simply want to offer you a big thumbs up for the excellent info you have got here on this post. I am coming back to your web site for more soon. Chrysa Brander Soinski

Leave a Reply

Your email address will not be published. Required fields are marked *