Takeaways
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Products and services to help advisors handle crypto on behalf of clients are only just emerging.
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Even so, most serious cryptocurrency investors want to hold tokens directly.
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Advisors should understand how hot wallets and cold storage work for their crypto investor clients.
How do we advise clients on an asset we can’t (yet) handle directly?
Clients are already asking about investing in cryptocurrencies, but within the next tax year, they’ll almost certainly be asking about what to do with the digital tokens they already have.
That’s because billions of dollars in new wealth have been created since bitcoin roared into the marketplace. And to handle this influx, our industry will have to speak the language of cryptocurrency – specifically, how crypto enthusiasts hold and store their digital wealth.
Cryptocurrencies and other digital assets were born in a move toward self-sovereignty during a time of very low trust in the financial industry. As a result, many digital asset owners are accustomed to holding tokens themselves, and will be slow to trust products and services…
