Advisers’ Next Task? Learn About Crypto

Most wealthy investors are looking for expert guidance about digital assets but doubt their adviser’s ability to provide it, according to a February study from digital asset provider CoinShares International Ltd.

The survey, which polled 500 investors, found that 82% of respondents would be more likely to seek out a financial adviser offering cryptocurrency-related investment guidance.

Half of the investors polled were individuals with between $500,000 and $999,999 (sub-high-net-worth), while the other half had at least $1 million (high-net-worth).

Many investors said they want a financial adviser who offers crypto-related investment guidance, and 29% said they would see it as a “major red flag” if an adviser did not have experience with digital assets or recommending digital asset products without risk explanation. According to CoinShares, this preference is evidence of investors’ concern about advisers’ readiness to support growing client demand.

Jean-Marie Mognetti, CoinShares’ CEO, said that while digital asset adoption is advancing rapidly among investors, it does not mean they want to do it on their own.

“They’re looking for advisers who can serve as strategic partners, not product pushers,” Mognetti said in a statement, adding that there is a significant opportunity for advisers who invest in their credibility to stand out in a competitive market.

‘Investors Bullish on Crypto’

Most current digital asset holders reported they plan to increase their exposure to the asset class this year, and more than half reported they already monitor or trade crypto at least daily, according to the survey.

The survey also found that 88% of crypto investors say they already collaborate with a financial adviser and that 78% of non-crypto investors would be open to doing so, provided their adviser offered digital asset support. Similarly, 55% of respondents said it is vital that advisers have digital asset knowledge, while 51% said they would only look for ones who provide crypto education.

Tool for Building Wealth

Sub-high-net-worth investors reported they are more inclined (39%) to want to increase their crypto exposure sooner rather than later when compared with their wealthier peers (13%), according to the survey.

Still, the survey found that investors reported large barriers when it comes to access and information about the asset class. Many of these individuals are self-taught, “using public tools and platforms to navigate complex markets often built for institutional players.”

The Investors surveyed said they want advisers to play various roles, including educator, risk manager and gatekeeper, that help them secure investment vehicles like crypto exchange-traded funds and trusts.

According to the survey, the most coveted roles include risk management (54%), access to compliant vehicles like crypto ETFs and trusts (54%), and custody and security guidance (51%).