Cryptocurrency’s breakthrough from the financial fringes to the mainstream has been characterized by major investors like Paul Tudor Jones — and some companies like Microstrategy (MSTR) and Tesla (TSLA) — dipping their toes into Bitcoin (BTC-USD). Even Apple (AAPL) CEO Tim Cook is getting in on the action.
Yet some financial advisors and wealth managers appear to be struggling over how to adapt to the new era, in a sector defined by head-spinning price action, still-evolving regulation, and rising fraud.
A recent survey from fintech company eMoney Advisor found about 38% of U.S. respondents say their investments are managed by a financial advisor, and that 43% said they invest in cryptocurrencies. The data underscore how less than half are handling out digital token advice, even as the sector becomes an increasingly hot topic in retail and institutional investing.
Separately, a January survey by crypto investment manager Bitwise found a staggering 94% of advisors surveyed have gotten crypto-related questions from clients. Yet a slim 15% actually allocated money to digital tokens.