The cryptocurrency investment is not the preferred option for around 68% of the fund selectors. The prime reason is the lack of transparency and significant security threats present in the network; the fund selectors advise customers about the investment schemes and help them find the best fit.
CNBC reports that nearly 2 out 3 fund selectors are against crypto investments, as per the survey of 141 US investment executives in top US firms managing clients’ assets worth $2.7 trillion. Cryptocurrencies such as Bitcoin and Ethereum are popular among younger investors due to their high returns and greater efficiency.
Crypto Market Is Not Transparent Enough
CNBC reports that more than 10% of the survey participants hold crypto assets. The older investors prefer conventional options, including real estate, stocks, mutual funds, and bonds, over digital assets. However, crypto assets have gained considerable profits recently. Major companies have also accepted crypto coins. Several investors hold back from crypto markets due to their indefinite attributes.
CNBC reports that nearly 87% of the investors feel that crypto-assets should be more transparent. The legal framework has limited control over the crypto market; this makes it a high-risk investment option.
Young Investors Are Inclined Towards Crypto Assets
CNBC quoted Dave Goodsell, executive director of the Natixis Center for Investor Insight, who said, “I think that makes it challenging to recommend such things if they’re in a fiduciary role. I think that’s where the hesitancy comes from.” The survey shows that around 70% percent of the investors suggest that advisory firms be more open on crypto investment. The executives should remain flexible and acquire more knowledge in the crypto market. The crypto investors are also vulnerable to cyber-attacks; hackers sell sensitive user data to third-party apps or brokers to gain hefty profits.
Bitcoin Prices Have Declined This Year
CNBC reports that financial advisors warn investors against investing significantly in crypto. The volatile crypto market can incur huge losses if not handled carefully. CNBC reports that Bitcoin prices fell to $43,000 from their record high of $67,000 in November 2021. The crypto market witnesses more ups and downs than any other market.