Financial Advisors Still Walking on Eggshells With Cryptocurrencies

While cryptocurrency has made headway the past couple of years in gaining acceptance in traditional finance circles, there’s still a lot of work to do — in particular, getting more financial advisors to hop on board the crypto train.

“We are not advocating to our clients that they buy bitcoin or other cybercurrencies,” says Fred Dent, a Baton Rouge-based chartered financial analyst, who is in the process of learning more about the crypto market (per a Greater Baton Rouge Business Report article). “I would not put any of my clients’ capital at risk, because we don’t speculate.”

The crypto markets have been on a wild ride as of late. Using leading cryptocurrency bitcoin as the pulse of the market, it lost as much as 25% this year before recently turning positive for 2022 before a slight correction.

Overall, however, the crypto markets have remained steady in recent weeks amid Russia’s invasion of Ukraine. Russia is relying more heavily on cryptocurrencies amid a collapse of its local currency, the ruble, while Ukraine is receiving humanitarian assistance with cryptocurrency donations.Bitcoin Price Chart

Institutional Investors Are on Board

While the broad investment community is still trying to develop a palate for cryptocurrencies, institutional money is certainly on board. A bevy of big money firms and investors are ready to throw boatloads of capital into crypto.

“More big money managers are finally starting to take crypto seriously. A majority of institutional investors see a role for digital assets in their portfolios,” said Yahoo Finance’s Alexandra Semenova. “That’s according to a new survey by the London-based crypto hedge fund, Nickel Digital. 84% of respondents to the survey indicated that they believe crypto will become mainstream. This is based on answers from 200 institutional investors around the globe, including pension funds, asset managers, and wealth managers.”

Big names in the institutional finance world are being thrown around with crypto.

“Goldman Sachs earlier this month became the first major US bank to trade crypto over the counter. You have Ray Dalio of Bridgewater Associates reportedly looking to invest in a crypto fund,” Semenova added further. “And then BlackRock is allegedly planning to offer a cryptocurrency trading service to its investor clients.”

For more news, information, and strategy, visit the Crypto Channel.