While cryptos have become more mainstream in the past year and saw a rapid increase in both adoption and interest, a majority of fund selectors — investment professionals responsible for fund selection and portfolio construction at leading US wealth management firms, private banks and wirehouses — say they won’t recommend crypto investments, according to a new survey.
By Yaёl Bizouati-Kennedy
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The new Natixis Investment Managers survey found that while 40% of fund selectors reported clients are increasingly demanding cryptocurrency solutions and 45% feel pressure to add cryptocurrencies specifically to appeal to younger investors, 68% of them don’t think individual investors should have exposure to cryptos.
“As fund selectors have a duty to recommend products that make good financial sense, we believe they may be more reluctant to recommend cryptocurrencies for both of these reasons: lack of transparency and a need for government regulation,” Goodsell added.
The survey also noted that 70% say their firm needs more education in digital assets and cryptocurrencies before investing in them.
Cryptos are top of the list in terms of correction concerns, as well, with 62% predict a correction for cryptocurrencies, followed by bonds at 49%; stocks at 46% and tech at 43%.
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In fact, the Grayscale Bitcoin Investor study found that the slice of Americans who own bitcoin has increased to 26% in 2021 from 23% in 2020. And most of these investors are “hodling,” with 66% of those who purchased bitcoin more than 12 months ago still owning it today.
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