Advisor Interest in Crypto Assets Grows: FPA Survey
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- Twenty-six percent of advisers said they plan to increase their cryptocurrency usage or recommendations.
- Almost half of the advisers said their clients ask questions about crypto assets.
- The same percentage indicated that clients are wondering about the effect of the tax changes on their portfolios.
More than a quarter of financial advisers (26%) participating in the FPA’s annual investment survey indicated that they plan to increase their use or referrals of cryptocurrencies in client wallets over the years. Next 12 months, up from 14% a year ago.
Of the 529 survey respondents, 15% said they use or recommend cryptocurrencies to their customers, up from 1% a year ago.
“It is clear from these results that we have reached an inflection point in the wealth management space,” said Tyrone Ross, CEO of Onramp Invest, a technology company providing RIAs with access to crypto assets, which helped conduct the investigation with the FPA. and its Journal of Financial Planning. “Advisors are now faced with a clientele that demands knowledge, access and advice from their advisor on crypto assets. “
Indeed, according to the survey, 49% of advisors said clients have asked them to invest in cryptocurrencies this year, up from 17% in 2020. An equal percentage of clients asked about the effects of cryptocurrencies. tax changes on their portfolio.
“Solving tax problems represents an opportunity for financial planners to be of great value to clients,” Dan Moisand, certified financial planner and editor of the Journal of Financial Planning, said in a statement. “Taxes are easily one of the biggest expenses clients will pay in their lifetime. “
President Joe Biden has proposed to increase the marginal tax rate on high earners – $ 509,300 for married couples and $ 452,700 for single tax filers – from 37% to 39.6%, and to increase the Capital gains tax for people whose adjusted gross income exceeds $ 1 million from 23.8% to 43.4%.