Investors are increasingly looking to uncorrelated assets like digital currencies to diversify their portfolios amidst uncertainty in the investment landscape. This, combined with demographic shifts that will see more than $68 trillion of wealth transferred from older to younger generations over the next 25 years in the U.S. alone means that advisors must be cognizant of clients’ evolving investment preferences.
As data illustrates, there’s an increasing propensity for the next generation of investors to allocate dollars into cryptocurrency. Consequently, now is the time for advisors to better understand this relatively new asset class.
At Grayscale, the world’s largest digital currency asset manager, we are committed to educating financial advisors and providing them with the tools they need to consider and decide how digital currencies may fit into their clients’ portfolios and investment strategies.
Digital currencies have unique investment characteristics that other asset classes do not offer, which may provide benefits in the right portfolio. Understanding digital currencies and how investors can participate in the asset class is important to the continued evolution of the financial advisor space — an important consideration given that financial advisors are already increasingly fielding questions and discussing digital currencies with their clients.
Our goal is to provide straightforward and objective educational resources for financial advisors so that advisors can be better armed to support their clients. As such, the toolkit unpacks Bitcoin’s unique qualities, portfolio simulations,* different ways for investors to gain exposure to the asset class, and more.
The Digital Currency Toolkit for Financial Advisors is available for download here: https://gryscl.co/Toolkit.
Additionally, Grayscale joined InvestmentNews for an educational conversation about what advisors should know to have more informed and in-depth discussions about digital currencies with clients. The live webcast “The Who, What, and Why of Digital Currency Investing” is available for replay here: https://gryscl.co/31lyLFJ.
*Hypothetical simulated performance results have certain inherent limitations and there is no guarantee that the market conditions during the past period will be present in the future. Full portfolio simulation details are included in The Digital Currency Toolkit for Financial Advisors. All simulations are subject to the disclaimers therein.
This article is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.