Ric Edelman’s DACFP Expands Crypto Education Program to Accommodate More Professionals and Investors

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Ric Edelman’s ongoing crusade to bolster cryptocurrency education is spreading its wings.

Edelman, who has made digital currencies his primary focus since retiring from his eponymous $291 billion independent advisory firm, Edelman Financial Engines, in 2021, leads the Digital Assets Council of Financial Professionals, an organization research and education company that offers financial advisors an online certificate in blockchain and digital assets. The organization’s new flex: a revised and expanded curriculum with course tracks for a wider range of crypto enthusiasts.

Along with a segment that teaches advisors how to incorporate digital assets into their practice and explain crypto to clients, the expanded program includes lessons for non-client-facing finance professionals who focus on regulation. and operational issues; an industry track for those employed in the digital asset community; and an investor/consumer/student track presented as a place for enthusiasts and the crypto-curious.

The push comes amid data on investors skeptical of digital assets. A study by Arizent in January found that nearly half of financial advisors, or 49%, surveyed said they did not consider digital currencies a suitable investment. Three out of four advisors said less than 5% of their clients invested in crypto last year.

The DACFP program, which began in 2021 and is billed as the first of its kind, offers up to 18 continuing education credits upon completion. Last summer, it had recruited more than 1,200 people from eight countries.

Instructors include Scott Stornetta, the co-inventor of blockchain technology; Lex Sokolin, director of crypto-economy at ConsenSys; Del Wright Jr., professor at the University of Missouri-Kansas City School of Law; and Laura Shin, author and podcaster.

The expansion aims to broaden the appeal of crypto to a wider audience, despite recent high-profile crashes and an ongoing banking crisis.

Edelman argued that the banking crisis is causing Americans to look for other places to store their money. Silvergate Capital and Signature Bank, two of the leading cryptocurrency banks, closed within days this month; FTX, once the third-largest crypto exchange in the world, declared bankruptcy last November.

“In a strange and unexpected way, Bitcoin in 2023 turned out to be safer than bank accounts and much better performing than stocks,” Edelman explained in an email to Financial Planning. “So people now realize that they need to understand how cryptography works, and our certificate program is the best way for all of them to learn.”

He cited the volatility surrounding digital assets at the end of 2022 as evidence of the need to catch up on the alternative asset class.

“After the huge crypto performance of 2021, many people became arrogant, thinking that crypto offered an easy path to wealth. But 2022 brought everyone back to reality,” Edelman said. “The collapses of Terra/Luna, Celsius, Voyager, BlockFi and others, culminating in the FTX debacle, have made everyone realize that it’s not as easy as they thought, so they need help. ‘a better understanding of cryptography so that we can manage risks and opportunities more effectively.

He added that the most interesting stat from the volatile run over the past year has to do with crypto adoption, which grew 10% in 2022 despite a 70% drop in price.

“Now 22% of American adults own cryptomes and that’s likely an even higher percentage of RIA clients. So it’s imperative that advisors and their businesses become familiar with this asset class. Because if they don’t can’t or won’t help their clients, their clients will turn to other advisers who will,” he said.

Edelman told Financial Planning his team expects a high level of advisor interest in the program. But what surprised him was the strong interest from people outside of wealth management.

“We discovered that 60% of the people enrolled in our certificate course are not advisors. They work in the financial services field. They are executives, managers and back-office staff of advisory companies, as well than regulators and the media,” Edelman said. “We have also had a large number of people from fund companies sign up for our course. In many cases, fund companies ask their staff to take the course, as the companies themselves are trying to figure should be their crypto strategy, but (find out) that nobody in the company has enough knowledge about this new asset class.

Because his original course was designed exclusively for advisors, adjustments had to be made. Edelman said some of the content on the program is of no value to non-client-facing finance executives, crypto professionals, or the public.

“Public education is extremely important, and we in the financial services industry and the crypto community have an obligation to educate consumers about this new asset class,” he said. Citing Federal Trade Commission statistics showing that 46,000 Americans have lost $1 billion to crypto frauds and scams over the past two years, he added, “This happened because people heard the hype, but they don’t have the knowledge they need to protect themselves.

Bitcoin has had a bump amid the recent chaos. Bloomberg reported on Monday that turmoil in the banking sector, hotter than expected inflation data and renewed hopes for a dovish Federal Reserve had pushed the biggest digital coin to levels not seen in about nine months. Surpassing $28,000 for the first time since June 2022, Bitcoin traded at around $28,200 early Monday. The currency is now up more than 70% year-to-date, Bloomberg reported. Other tokens also rallied, with Ether gaining almost 50% since Dec. 31 and Solana more than doubling.

Crypto markets have regained ground since hedge fund Three Arrows Capital and crypto lender Celsius Network crashed last summer. The havoc in traditional banking markets, which saw Swiss lender Credit Suisse embark on a government takeover of rival UBS on Sunday and several US lenders, including Silicon Valley Bank, has failed in recent weeks, could back things up.

Edelman’s board expansion is its latest effort to reach more students, who are more enthusiastic about the asset than older investors. Last June, Flourish and DACFP entered into a partnership that gives all Flourish Crypto RIA clients access to an introductory course designed to help advisors better understand blockchain, bitcoin, ethereum, and more. other digital assets.

Other efforts to bolster digital asset education in wealth management include the merger of Interaxis and CPE World to form a comprehensive platform to teach financial advisors and accountants how to integrate cryptocurrencies into their convenient.

Interaxis started in 2019 as a YouTube channel for certified financial planner Adam Blumberg and financial analyst Ron Dixon to explain the world of blockchain and decentralized finance. As the platform grew, Blumberg shut down its RIA to work full-time on digital asset education.

And in the fall of 2022, Envestnet shared its plans to roll out a crypto education program with the help of Anthony Pompliano, the founder of Pomp Investments, and cryptocurrency recruiting firm Inflection Points.

Edelman said he welcomes other efforts to create and distribute crypto education.

But he also staked out what could be considered squatters’ rights.

“I warn those who are interested,” he said. “It’s hard to create content that’s both interesting and informative; hard to keep it up to date; hard to keep it educational and not a veiled sales pitch; hard to promote it and get attention; hard to make all this in a profitable way.”

“While anyone can create a soft drink, it’s hard to compete with Coca-Cola.”

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