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As investors become more interested in cryptocurrencies, financial advisors are feeling a new urgency to offer the investments to clients.
About 49% of advisors said clients have asked about cryptocurrencies in the past six months, up from 17% in 2020, according to the Financial Planning Association and the Journal of Financial Planning.
More of these financial professionals — 26% — plan to increase how much they use and recommend cryptocurrencies in the next 12 months.
Currently, 14% of advisors are using or recommending those investments. That’s up from less than 1% in 2019 and 2020.
“Folks are realizing now that it’s not going away,” said Tyrone Ross, CEO of Onramp Invest, a provider of “cryptoasset” management technology for financial advisors. The company collaborated with the FPA and the Journal of Financial Planning on the survey.
Advisors who don’t adapt could risk getting left behind.
“Clients are coming to advisors now knowing more than the advisors,” Ross said. “The advisors are absolutely terrified, because you never want to look dumb in front of your client.”
How advisors are using crypto
Advisors who are integrating cryptocurrencies now are typically adding a 1% to 2% allocation, Ross said. However, those who are more committed to the strategy may be