Connect with us

Crypto Exchange

Almost 10% of US-Based Financial Advisors Bought Crypto for Their Clients in 2020: Survey

Published

on

Almost 10% of US financial advisors bought crypto for clients or themselves and listed high potential returns and inflation hedging as the main reasons.

A recent report conducted by Bitwise and ETF trends concluded that the number of financial advisors who allocated funds to crypto-assets has increased by nearly 50% in a year.

Additionally, the percentage of investors expressing interest in purchasing digital assets has grown to 81%.

Advertisement

Financial Advisors Confirmed: Crypto Demand Is Rising

According to the 2020 study, financial advisors manage about half of the wealth of American investors and play a significant role in the distribution of funds. Consequently, the provider of index and beta crypto funds, Bitwise, and the ETF analysis monitor, ETF Trends, carry out yearly surveys among advisors to check their views on cryptocurrencies.

Most respondents were independent RIAs (45%), followed by independent broker-dealer reps (25%), financial planners (19%), and wirehouse reps (11%).

More than 80% of advisors reported that they had received at least one question from a client about cryptocurrencies in 2020. This is a slight increase from the 2019 results, where the number was 76%.

Advertisement

About three-quarters believed that their customers were allocating funds in crypto outside of their advisor relationship. Naturally, 26% were confident that the clients were not investing in digital assets yet.

Financial Advisors' Clients On Crypto. Source: BitWise
Financial Advisors’ Clients On Crypto. Source: Bitwise

Financial Advisors Warm Up To Crypto Investing

What’s even perhaps more bullish for the industry is that more and more financial advisors have started to purchase digital assets for their clients. Although still relatively low, the percentage has grown by 50% since 2019’s result of 6.3%.

“The percentage of financial advisors who report allocating in crypto in client accounts rose more than 50% last year, from 6.3% to 9.4%. Still, with less than 10% of advisors reporting allocations, this remains the domain of early adopters.” – reads the study.

The paper outlined that most of those who invested in crypto for their clients are independent RIAs. This could be expected to some extent as they face fewer restrictions regarding what types of investments to include in clients’ accounts.

In contrast, wirehouse representatives have reported the least amount allocated in crypto.

Advertisement

Despite the low percentage, 82% of the advisors that have invested for their clients have done the same for their personal accounts as well. 78% of them also plan to increase their cryptocurrency portfolio in the next 12 months, while 22% said they will “hold steady.”

The 2020 survey showed that most advisors listed “high potential returns” and “inflation hedging” as their most probable reasons to invest in crypto. Interestingly, the hedging argument had received only 9% of votes in 2019 while the percentage grew to 25% in 2020. This could be related to the fact that the US printed over 20% of all dollars in 2020, and the currency’s value started to depreciate.

News Source

Advertisement

Ripple

Coinbase CEO Shows Support for Ripple and XRP Amid Battle with SEC

Published

on

The XRP Army believes that Brian Armstrong could be hinting at relisting the cryptocurrency

Coinbase CEO Brian Armstrong has displayed support for Ripple in its fight against the U.S. Securities and Exchange Commission.

In a series of recent tweets, Armstrong writes that the company’s case is seemingly going “better than expected.”

Advertisement

Armstrong stressed that launching attacks against the crypto industry and hurting investors is “politically unpopular.”

The head of the largest American exchange then channeled Ripple’s oft-repeated talking point about the SEC hurting consumers instead of protecting them:

The irony is that the people they are supposedly protecting are the ones attacking them.

Advertisement

XRP relisting rumors get a new life  

Armstrong’s tweets inevitably reignited rumors about Coinbase potentially relisting XRP on its platform.

The exchange moved to suspend XRP trading after the SEC filed a lawsuit against Ripple on Jan. 19, which triggered a massive price drop.

As reported by U.Today, Coinbase relisting rumors started making the rounds on social media after XRP trading pairs started showing up on the company’s mobile app last month, but it ended up being a bug.

Despite its legal troubles, XRP has remained resilient, with crypto mogul Mike Novogratz recently noting that the cryptocurrency has tripled in value since the agency filed its complaint.

Coinbase’s run-in with the SEC

Ripple started alighting itself with Coinbase after Armstrong publicly called out the SEC for threatening to sue the leading exchange over its yet-to-launch lending offering.

Even though the company caved in to the SEC’s demands and shelved the product in question, it seems like it hasn’t buried the hatchet with the formidable regulator.

Earlier this month, Coinbase proposed replacing the agency with a new cryptocurrency-focused regulator, arguing that the laws from the 1930s were not suitable for the “technological revolution.”

The exchange will have to convince Congress to pass a legislation that will establish a dramatically different regulatory regime that it envisions.

Advertisement

News Source

Advertisement
Continue Reading

Bitcoin

Legendary Trader Peter Brandt Challenges Binance with Four Questions about 88% BTC Crash

Published

on

Here’s what is unclear for Mr. Brandt about mysterious Bitcoin (BTC) flash-crash of Oct. 21, 2021

Prominent trader and analyst Peter Brandt has taken to Twitter to ask his four questions in the context of the flagship crypto’s 88% dropdown.

What do Binance and Binance.US have in common?

First of all, Mr. Brandt challenged the character of corporate relationships between Binance and Binance.US, its unit focused on American markets.

Advertisement

Also, Mr. Brandt asks whether Binance is planning to release detailed documents to specify statistics for trades, their volume and prices during the flash-crash.

Then, the trading legend asked about the role of the platform in taking the opposite side of a client fills.

Advertisement

Besides the Binance CEO and co-founder Changpeng “CZ” Zhao, Mr. Brandt mentioned the Interactive Brokers platform, U.S. watchdogs CFTC and SEC and Gary Gensler, the SEC chairman.

Most expensive “trading algorithm bug” ever?

Also, Mr. Brandt attached a screenshot of a tweet by CZ when Binance’s boss warned his audience about expected volatility spikes across cryptocurrency markets.

Finally, Mr. Brandt added that he never used Binance for trading.

Advertisement

As covered by U.Today previously, on Oct. 21, 2021, amidst a spending rally, the Bitcoin (BTC) price briefly tanked to the $8,000 level, losing more than 88% in no time.

A similar flash-crash was registered on 26 other low-liquidity exchanges. A Binance.US representative attributed this dramatic plunge to a critical bug in third-party mechanisms by one of the platform’s sophisticated institutional clients.

News Source

Advertisement
Continue Reading

Crypto Exchange

Crypto investments a financial backup for Facebook whistleblower

Published

on

Frances Haugen, a former Facebook employee turned whistleblower, revealed that her refuge in Puerto Rico is currently being supported by an auspiciously timed cryptocurrency investment.

Haugen worked as a Facebook product manager before accusing the company of spreading controversial and insensitive misinformation. She allegedly possesses numerous confidential research documents, which, according to her, shows that “Facebook prioritizes profit over the well-being of children and all users.” Previously, Facebook has been accused of influencing the 2016 United States presidential election with the help of Russian agencies.

In a follow-up interview with The New York Times, Haugen was asked about her financial situation:

Advertisement

“For the foreseeable future, I’m fine, because I did buy crypto at the right time.”

The whistleblower also received financial help from nonprofit organizations (NPO) backed by Pierre Omidyar, a co-founder of eBay. However, Haugen clarified that Omidyar’s NPO fundings were only used to finance travel and related expenses.

According to Haugen, shifting to Puerto Rico helped her join her “crypto friends” who enjoy capital tax exemptions on Bitcoin (BTC) and cryptocurrency assets.

Iconic whistleblower and former U.S. Central Intelligence Agency agent Edward Snowden also continues to show support for the Bitcoin economy amid regulatory pressures from governments across the world.

Advertisement

On Oct. 4, Snowden tweeted about Bitcoin’s tenfold growth despite China’s blanket ban on crypto mining and trading.

News Source

Advertisement
Continue Reading