Financial advisors, overall, allocation only 6% of client assets in cryptocurrencies. However, a new survey suggests FAs might double their investment in crypto this year. Many financial advisors (54%) find Bitcoin attractive because of its lack of correlation to other asset classes. There is also a $50,000 Bitcoin price prediction for 2020.
Bitcoin currency is going in the right direction. However, FAs also express concern about crypto allocations. They include:
- Regulatory concerns (56%)
- Too volatile (43%)
- No idea how to value cryptocurrencies (41%)
- Lack of easily accessible investment vehicles like ETFs or mutual funds (39%)
- Custody concerns/fear of hacks (34%)
- Lack of understanding (31%)