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Bitcoin first ‘genuinely new asset class’ in 150 years, says Ric Edelman

June 17, 2021 Coin Telegraph

Adoption

Financial adviser, Ric Edelman says his colleagues need to get rid of their bias and examine Bitcoin and crypto assets with “open eyes” and “genuine curiosity.”

Ric Edelman, founder of financial advisory outfit Edelman Financial Engines, described Bitcoin (BTC) and crypto assets as a “completely new and different asset class” that has nothing in common with mainstream staples like stocks, bonds, real estate, oil, or commodities, to mention a few.

Speaking to Yahoo Finance on Wednesday, the financial adviser called Bitcoin and crypto “the first genuinely new asset class in about 150 years.” According to Edelman, not since the gold market has there been an innovative asset class like cryptocurrencies.

As part of the discussion, Edelman revealed that he was helping educate financial advisers about the need to be more open-minded about crypto as a viable portfolio diversifier.

Indeed, as previously reported by Cointelegraph, a recent survey by corporate research outfit Opinium showed that over 90% of 200 polled independent financial advisers in the United Kingdom were against crypto investments for their clients.

While not specifically reacting to the Opinium poll, Edelman characterized the reticence among independent financial advisers (IFAs) as being due to bias, stating:

“Most financial professionals have been in business a long time […] But the more experience, the more talent you have, the more difficult it is to get your head around Bitcoin.”

According to Edelman, given that portfolio diversification and rebalancing are popular strategies of IFAs, then BTC should be an obvious choice.

Edelman further argued that financial advisers need only look to the technological underpinnings of cryptocurrencies to see that cryptos are not in the same cadre as tulips or beanie babies.

For Edelman, crypto and blockchain technology, in general, is the “most impactful commercial innovation since the development of the internet itself.”

Back in 2019, the financial adviser remarked that a Bitcoin exchange-traded fund in the United States was an inevitability.

Big rise in financial advisers adding crypto assets to client portfolios

June 2, 2021 Coin Telegraph

Coin Telegraph

More than a quarter of financial advisers intend to recommend crypto investments over the next year.

According to a survey, financial advisers are recommending investments in Bitcoin and crypto assets to their clients more than ever before.

A report by the Financial Planning Association released on June 1 has taken a look at the changing attitudes towards crypto assets. The ‘2021 Trends in Investing Survey’ revealed that more financial advisers than ever are recommending their clients have some crypto in their portfolios.

The survey was conducted in March and received 529 online responses from professional financial advisers who offer clients investment advice and recommendations.

It stated that 14% of financial advisers have already added crypto assets to their clients’ portfolios or are recommending it to them. Even more are planning to do so over the next year.

“More than a quarter (26 percent) of advisers indicated in the 2021 survey that they plan to increase their use/recommendation of cryptocurrencies over the next 12 months.”

The survey revealed that the figure is up significantly from the previous year when less than 1% of advisers were recommending exposure to cryptocurrencies.

Furthermore, 49% of finance professionals indicated that, in the last six months, clients have asked them about investing in cryptocurrencies, a figure that has almost trebled from just 17% in 2020.

Just below half, or 48% of financial advisers, claimed to read occasional news stories on cryptocurrencies and are somewhat comfortable conversing about them, with a third of advisers actively educating themselves on digital assets.

Clients appear to be less concerned with market volatility this year compared to last, the survey found. More than half, or 52%, of financial advisers, stated that their clients inquired about market volatility over the past six months, compared to 76% for the previous year.

Investors may be drawn to crypto assets as a hedge against inflation which has been exacerbated during the pandemic and ongoing fiscal stimulus packages. Inflation in the U.S. is hovering around a 13 year high.

In early May, Cointelegraph reported that financial advisers have been leading an institutional push toward crypto asset adoption.

Grayscale CEO Michael Sonnenshein told Cointelegraph that, “Curiosity and demand from clients are driving financial adviser interest in crypto.” His observations were derived from a survey commissioned by the investment firm showing that more than half of advisers are receiving questions from their clients about cryptocurrencies.

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