Personal Finance Advisors Who Don’t Discuss Crypto Risk Losing Clients, Analysts Warn

Despite growing interest in Bitcoin among retail investors, many financial advisors have chosen not to address crypto-related requests from their clients, according to several financial experts.

Certified financial planner in Texas, Jim Crider, who has been urging his clients to consider Bitcoin, says most financial advisors he has interacted with disagree with him, describing BTC as a worthless digital asset.

However, Crider believes the skepticism shown by these advisors could cause them to lose clients if demand for Bitcoin from leading Wall Street companies like BlackRock continues to grow. In the past few months, institutional demand for crypto has pushed Bitcoin into new territories, with the coin peaking at $93,584 earlier this month.

Retail Investors Will Soon Seek Pro-Crypto Financial Planners, Matt Apkrian Claims

Matt Apkarian, the product development director at consulting company Cerulli Associates, agrees with Crider. He says financial advisors unwilling to talk about Bitcoin and other cryptocurrencies could force clients to seek people who are willing to.

While he acknowledges that institutions have played a bigger role than retail investors in the current bull run, Apkarian notes a significant retail interest in recent weeks. He reveals that Cerulli Associates has received numerous Bitcoin-related requests since the start of November.

Furthermore, he says many of the firm’s clients who were skeptical about Bitcoin due to its complexities are now enticed by the idea of using a decentralized currency not controlled by any government.

Retail Enthusiasm is Growing, Theresa Morrison Says

Meanwhile, Tucson-based financial planner Theresa Morrison says retail enthusiasm has grown since November 6, when Donald Trump, a pro-Bitcoin candidate, was declared the winner of the US Presidential elections. She points to the rising number of Google searches for Bitcoin-related terms and improved ranking for the Coinbase app on the App Store.

While Morrison admits that retail investors have yet to enter the crypto markets, she expects them to come in when Bitcoin reaches $100,000, arguing that this price will likely create more interest in crypto.

It is important to mention that Crider and Morrison are active members of the Bitcoin Financial Advisors Network (BFAN). This organization is made up of financial planners who target clients with a ‘commitment and desire to add Bitcoin to their portfolios.’

Recent Study Shows Lack of Interest in Crypto From Financial Advisors

BFAN has only six members, according to Crider, who says many financial advisors in the United States are not Bitcoin bulls. His statement is not far from the truth, considering that recent research by Cerulli Associates showed most financial planners don’t recommend Bitcoin to clients.

The study, which involved 1,500 financial advisors, found that only 2.7% had discussed crypto with their clients.

Moreover, a survey conducted in January by VettaFi/Bitwise revealed that only 11.4% of financial advisors had added crypto to clients’ portfolios despite reporting an increase in crypto-related questions last year.

Why Many Financial Advisors Avoid Crypto Investments

But why are most advisors not discussing Bitcoin and other crypto assets with their clients? It could be because of their affiliations with big financial institutions that have prohibited them from recommending cryptocurrencies to clients.

Additionally, Alex Shahidi, a managing partner at wealth advisory company Evoke Advisors, says many financial planners are reluctant to discuss crypto assets because of associated complexities.

He is, however, optimistic that as large and trusted institutions pour funds into crypto, the skepticism among financial advisors is likely to fade away and eventually recommend digital currencies to their clients.

Meanwhile, Apkarian says most financial planners view Bitcoin as a Ponzi scheme that could go to zero at any minute. He points to Cerulli Associates’ survey in 2023, which asked financial planners who don’t recommend crypto to their clients to share the reasons behind their stance. The common answer was that digital assets do not offer real-world utility. So, they may be non-existent in the future.

As most advisors disregard Bitcoin, independent wealth advisor Charles Zhang insists that the coin has massive potential. He advises his clients to allocate roughly 1% of their investment funds to BTC.

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