But with headlines covering stories of NFTs selling for millions of dollars, and crypto investments similarly reporting eye-popping returns, Rockwood says many investors fear missing out on opportunities from the new asset class. It will be difficult to ignore or move. ,
“The issue for advisors and funding firms is how they can position themselves in areas where regulation still needs to catch on,” says Rockwood.
While it may have been easy for advisors to brush off cryptocurrencies as an investment oddity a few years ago, clients who ask about them are becoming more insistent. In its North American survey, Natixis found that 40% of fund selectors say their clients are increasingly seeking crypto solutions.
Almost a similar number (42%) feel pressure to add cryptocurrencies specifically to attract younger investors. Indeed, 45% of North American respondents said they are already offering digital currencies. And of that group, 39% have plans to further expand their existing offering.
Nevertheless, 71% of respondents were of the view that their firm needs more education in digital assets and cryptocurrencies before investing. In line with this, Rockwood says that firms should understand that client questions about crypto assets will only continue, and they need to rethink how advisors should talk to clients about them.