Advisers fear crypto-assets, research shows

Less than two in five advisers are confident in their ability to discuss crypto-assets with clients due to widespread scepticism of them, research suggests.

A study commissioned by the global investment platform eToro surveyed the attitudes of more than 200 financial advisers towards crypto-assets.

The study shows nearly three quarters, or 74 per cent, of respondents say price volatility is their top concern and the main investment risk for clients.

Seventy two per cent say the lack of regulation is their second greatest worry, and 68 per cent identify fraud as their next highest concern.

Meanwhile two thirds believe crypto-assets will never become a standard part of their portfolios.

Nonetheless 76 per cent of advisers signal their support for the regulation of crypto-assets and almost a fifth say it would allow them to advise clients on investing in the asset.

eToro UK managing director Iqbal Gandham says: “We have long been advocates of appropriate regulation. Designed properly it would provide safety to the consumer and legitimacy to the industry long-term. It’s good to see support among the adviser community.

“As a regulated entity, we hope to work in partnership with advisers to educate investors about the potential offered by crypto-assets as part of a diversified investment portfolio.”

Money Marketing previously examined the anecdotal evidence advisers shared about their experience of crypto-assets with clients, including in Sipp planning and insistent client requests.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. How do you regulate an algorithm?

  2. Surely more akin to a day at the races than investment.

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