The rich see the crypto winter as the perfect time to buy

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(Kitco News) – The ongoing carnage in the cryptocurrency market has been a major drag on retail investors, leading many to exit the market and declare they are done with it. cryptos for good. But recent data shows that some of the wealthiest investors see this as the perfect time to gain exposure to the digital asset class.

According to the results of a survey conducted by the Greenwich Coalition, US financial advisors (FAs) are “responding to significantly increased investor demand for digital assets despite the current crypto winter.”

The survey – which was conducted in collaboration with Talos, a leading provider of institutional digital asset trading technology – found that 92% of “affluent and high net worth (HNW) clients” now question the access to digital assets in their wallets. .

A total of 30% of FAs surveyed indicated that they already have or plan to recommend specific digital asset investment products to their clients in the next three months.

“Overall, demand continues to grow, with more than half of advisors surveyed suggesting that client interest is increasing or staying the same as a year ago, with 35% saying interest has increased significantly over compared to last year,” the press release read.

The survey was conducted during the third quarter of 2022 and included responses from 537 US-based FAs who serve the affluent, the affluent, or a hybrid combination of these customer segments. Banks/telephones, insurance, independent and institutional businesses were included in the study.

“Financial advisors believe that the trend of growth in adoption of digital assets as an emerging asset class will persist and continue to increase, even in the face of the current bear market and recent market events,” the statement said. author of the report, David Easthope, Senior Market Analyst. Structure and Technology at Coalition Greenwich. “While the market will continue to evolve, our survey results suggest that the long-term demand trend remains intact in this fairly conservative segment of the market.”

Digital asset investment product compliance approval was identified by 69% of FAs as the most important feature for any digital asset platform. Compliance was considered far more important than research, execution quality, and data/analytics in terms of critical platform functionality.

“In fact, 64% of advisers said they had yet to create an investment strategy for their clients, primarily due to compliance restrictions making this difficult or impossible,” Easthope said.

The report also found that advisors consider ease of use and integration a priority, with 68% citing the importance of a single system for managing digital assets alongside other client assets.

“As digital assets become more mainstream, financial advisors and other service providers need access to reliable, compliant, end-to-end trading systems,” said CEO and co-founder of Talos, Anton Katz. “While institutional investors have shown an increased sense of caution following the collapse of FTX, we believe that demand for solutions to enable AMs and others to grow and scale their digital asset offerings will continue. to increase in the long term based on this report.”

Exchange-traded funds (ETFs) were AMs’ favorite crypto investment vehicles, with 64% saying they have or will recommend an ETF related to digital assets.

According to the report, “The options available for ETFs are expanding and there appears to be pent-up demand for these products. Other fund structures like OTC trusts and other investment funds are also attracting attention. Simply put, ETFs are a must have, probably due to their simplicity and regulated status.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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