This week in an article for ThinkAdvisor, Joe Elsasser, CFP® offers insights on cryptocurrencies and why and how financial advisors need to be prepared to answer client questions about the growing trend.
"What does all this mean for your clients? Right now, there are only a few ways to get exposure to crypto in client portfolios without buying crypto-assets directly. The goal of these products is to wrap cryptos in familiar structures for tax reporting and regulatory compliance.
Here’s the challenge today: Many of these products can trade at significant premiums or discounts to the net asset value, making the risk discussion highly relevant for advisors who are working with any amount of crypto-assets. If more products receive regulatory approval, we are likely to see crypto as an asset class in far more client portfolios.
Financial advisors need to become knowledgeable about cryptocurrencies. It is likely that we will start to see them in client portfolios more frequently going forward. We’re going to need to plan for them, or at least be able to plan around them to help our clients reach their financial goals."
Access industry news, expert insights, best practices, free downloads and more.
© 2010 – 2022 Covisum®. All Rights Reserved. For advisor use only. Covisum is not connected with, affiliated with or endorsed by the United States government or the Social Security Administration. The local advisor offering Covisum products may be an insurance agent, financial advisor, accountant or attorney. Advisors may offer other products or services and are compensated by commissions and/or fees for any other services they may provide.