Wealth Managers Are Growing ‘Comfortable’ with Crypto But Still in ‘Education Mode’ says Fidelity
Most financial advisors and wealth managers are still in “education mode” on cryptocurrencies, said Mike Durbin, Head of Fidelity Institutional, Fidelity Investments. However, demand for crypto assets is growing among larger investors, he added.
In an interview at Reuters Digital Assets Week, Durbin shared that while some investment firms and advisors managing the fortunes of wealthy people have grown “comfortable” and “sophisticated” with crypto, most of them are still getting a grip of the technology.
“They know what they are doing, and more importantly their end investor base also knows what they are doing – but the vast majority are still in the education mode.”
Back in 2018, during the bear market, Fidelity which has $9.8 trillion in customer assets as of Dec. 31, became one of the first mainstream investment companies to embrace cryptos and set up a unit to offer crypto custody.
Interest in Bitcoin and other crypto-assets is likely to grow as “alternative investments” increase in popularity, said Durbin.
“I think that the growth rate of bitcoin or digital assets will follow in that wake of broader alternative investments.”
“There’s still work to be done there to help advisors understand portfolio construction with these kinds of expressions.”