How Could it be Unbeneficial for Wealth Managers to Not Support Crypto?

7:55 am, Fri, 19 November 21

2021 has been a good and productive year, in terms of crypto adoption. Not only has the number of major and institutional investors increased, but the adoption of crypto assets by countries has also been seen.

Despite the surging significance and prominence of crypto utility, some parties are still not convinced about engaging with crypto. The volatility of the crypto market is one of the main reasons for this hesitance seen in some.

However, the benefits that do come with embracing cryptocurrencies are undeniable. According to reports, if wealth managers do not choose crypto, it can be financially unbeneficial for them. Let’s find out more.

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Wealth Managers and Embracing Crypto

Wealth managers are financial advisors who are reportedly indecisive to some extent about supporting cryptocurrencies. Barron’s, an American weekly newspaper by Dow Jones & Company, recently conducted research.

According to the research, wealth managers that offer crypto-related money management can benefit from around $4.6 billion in incremental fee revenue.

This is not the only benefit wealth managers might be passing up if they don’t support crypto.

As per reports, there are approximately 300 million people who are now using cryptocurrencies, all around the world. This is quite a vast user base, which can be affected if the financial advisors do not consider offering crypto-related wealth management.

The benefit for wealth managers is likely to increase even more considering the global crypto asset management market is expected to surge as high as $1.2 billion by 2026 (currently $0.4 billion in 2021).

Cryptocurrencies are also getting quite the attention of institutional investors, which is enhancing the significance of the asset class.

The crypto king, Bitcoin, has had a revised price prediction from JPMorgan, according to which BTC can surge as high as $146,000.

Not only this, but the CEO of the world’s largest crypto exchange, Binance has recently stated that:

Most institutions or organizations should be looking at crypto at this stage.”

It is also quite obvious that the upcoming Metaverse space, which is quite the buzz now, is also going to be inclined towards cryptocurrencies. At the moment, the year-to-date inflows seen for digital asset investment products are at a record of $9 billion.

Even several pension funds are reportedly interested in digital assets, despite the volatility associated with the crypto space.

What Should Crypto Investors and Traders Know?

The crypto space has been doing quite well in the past few weeks. The top two digital assets, Bitcoin and Ethereum, claimed new all-time highs. However, both cryptocurrencies are now facing slight price corrections.

Price corrections are generally considered to be healthy for a progressive price movement but will the price of BTC and ETH cross major resistance levels or not is yet to be seen.

  • Bitcoin is trading at $56,217 (at the time of writing)
  • Ethereum is trading at $4,056 (at the time of writing)

The crypto asset you choose to invest in depends on your personal preference. However, if you want to buy any of these digital currencies, make sure you know about some of the biggest crypto exchanges.

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