Investment Advisors Need to Get Savvy on Crypto and Blockchain Says Fintech Strategist

Global Director of fintech strategy at Autonomous Research Lex Sokolin said that investment advisors need to familiarize themselves with crypto and its underlying technology, however sceptical they may be, in an interview with CNBC May 16. Sokolin argued that investors will buy Bitcoin (BTC) whether advisors “like it or not,” so both individuals and financial advisors need to adapt to the phenomenon:

“Cryptocurrency is very controversial, but it’s really here to stay, and the underlying [blockchain] technology is really fundamental to the types of companies that people are building right now.”

Sokolin stressed that given the wild volatility of crypto markets, it wouldn’t be prudent to “go and fill your entire portfolio with cryptocurrencies.” However, he suggested that investing in crypto “is a good way to add alternatives to your general allocation, something like 3 [percent] to 5 percent of your portfolio.”

The traditional financial sector has historically been distrustful of the emerging crypto industry, with major Wall Street banks such as Merrill Lynch banning their financial advisors from buying Bitcoin-related investments for their clients. They went so far as to ban clients’ access to the Bitcoin futures contracts offered on CME and CBOE

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