Why Financial Advisors Are Cautious About Crypto

Cryptocurrencies have been on a roll since the U. S. election in November, with bitcoin hitting a new high above $107, 000 on Monday. But despite these soaring prices and President-elect Donald Trump's pro-crypto policies, many financial advisors are still hesitant to recommend crypto to their clients. Marianela Collado, CEO of Tobias Financial Advisors in Plantation, Florida, and a certified financial planner, says, "As traditional long-term planners, we don't include crypto in our portfolio allocations. We tell clients to only invest what they can afford to lose. "

Regulatory uncertainty is a significant concern for financial advisors. A survey by Cerulli Associates in April found that 59% of advisors don't use crypto and have no plans to. Only 26% might consider it in the future. A mere 12% use crypto based on client requests, and less than 3% recommend it themselves. Ashton Lawrence, a CFP at Mariner Wealth Advisors in Greenville, South Carolina, suggests that interested investors look into exchange-traded funds (ETFs). "It depends on what the client aims to achieve, " he says. "For an easy solution, ETFs might be the best bet. " Spot bitcoin ETFs, available since January, now have over $100 billion in assets. Brian Hartigan, global head of ETFs at Invesco, remarks that "Bitcoin ETFs have become the preferred method for holding bitcoin. "

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