Cryptocurrency explosion has financial planners recalibrating
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Voyager Digital CEO Steve Ehrlich says more money has been coming into his platform over the last few weeks compared to any time in its two year existence, noting there's a little rotation 'away from Bitcoin' to other coins.
Bitcoin 2021 Miami, which has been described as the largest Bitcoin event in history, kicks off at a time when financial advisers say more of their clients are showing interest in digital currencies.
Around 14% of advisers are using or recommending cryptocurrencies to their clients, according to a recent survey conducted by the Journal of Financial Planning and the Financial Planning Association, which is up from 1.4% in 2018 and less than 1% in 2019 and 2020.
About half of advisers said their clients had asked about investing in cryptocurrencies in the past six months, up from 17% last year.
"It is clear from these results that we’ve reached an inflection point in the wealth management space," Tyrone Ross, CEO of Onramp Invest, said in a statement. "Advisers are now faced with a client base that demands knowledge, access, and advice from their adviser on crypto assets."
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Thirty-four percent of advisers said their clients bought shares of GameStop as it gained popularity on social media platforms like Reddit when retail investors caused the beaten-down stock to soar earlier this year.
Bitcoin made recent headlines after Tesla CEO Elon Musk raised environmental concerns about mining the digital currency. The public debate led to a meeting including Musk and miners, where the latter committed to forming a council to accelerate sustainability efforts.
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As previously reported by FOX Business, Musk said last month that Tesla would stop accepting Bitcoin for vehicle purchases due to his environmental concerns.
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Bitcoin Miami is a multiday event that will feature speakers ranging from former congressman Ron Paul to skateboard pro Tony Hawk and Twitter chief Jack Dorsey.