Despite cryptocurrency markets tanking globally, investor interest in the asset class has not.
And banking on the notion that clients itching to learn more about digital assets will go to their financial advisors for guidance amid a volatile market, two well-known names in wealth management are joining forces to prepare planners for those potentially difficult conversations.
On Thursday,
The partnership gives all RIA clients of Flourish Crypto access to an introductory course specifically designed to help advisors become more fluent about blockchain, bitcoin, ethereum and other digital assets.
Flourish leaders say in addition to offering a crypto investing solution for wealth managers, it’s vital that they’re given the tools and resources to “confidently have a conversation about the asset class.” They add that while an estimated 25% of American households invest in digital assets, just 2% receive information on cryptocurrency from financial advisors.
One survey found that 62% of clients would consider switching advisors in order to get advice about bitcoin, giving advisors who know their stuff the chance to stand out.
“A staggering 94% of advisors have gotten questions from clients about crypto, and many feel ill-prepared to have these conversations,” Ben Cruikshank, head of Flourish, said in a statement. “We engaged DACFP to create a course that was specifically designed to help advisors quickly get up to speed on this new asset class so they can meet the growing curiosity and demand from their clients.”
The course, which provides advisors with 1 1/2 CE credits, consists of 12 videos. It covers topics such as assessing crypto’s role in client portfolios, understanding custody, compliance, and the difference between direct and indirect ownership of crypto while providing advisors a path toward earning DACFP’s Certificate in Blockchain and Digital Assets at a discount.
Edelman said once through the entire DACFP curriculum, planners will be better equipped to handle the crypto-related conversations that can crop up in client meetings. The program serves a wide range of financial professionals and currently has more than 1,200 people from eight countries enrolled.
“We’re excited to partner with a firm that is committed to educating advisors about blockchain and digital assets,” Edelman said. “By learning about crypto, advisors will be able to grow their business while improving the advice and service they provide to clients.”
Built on the Flourish Platform in use by more than 440 RIAs managing over $1.4 trillion in combined assets, Flourish Crypto serves more than 70 RIAs with a combined AUM of $150 billion.
Officials said these firms rely on Flourish Crypto’s crypto investing solution, which allows them to feature their branding; take discretion or offer client-directed accounts; and have visibility into balances, statements and 1099-Bs.
Meanwhile, bitcoin is currently on track for its worst quarter in more than a decade, according to a Bloomberg News report.
The 58% drop in the biggest cryptocurrency is the largest since the third quarter of 2011, when Bitcoin was still in its infancy, data compiled by Bloomberg shows. The past decade has seen several booms and busts with the market value of all tokens swelling to a peak of $3 trillion last November as they gained more widespread adoption and ultralow interest rates spurred risk taking.
The total market figure now stands at around $900 billion after a quarter in which the Terra crypto ecosystem collapsed close to zero and a mounting liquidity crunch caused several prominent companies to border on insolvency.
Bloomberg reports that some of crypto’s best funded companies announced widespread layoffs while bitcoin’s current trading levels have seen it floating back and forth around the $20,000 mark for weeks.
Prices were tumbling again on Thursday, with the world’s largest token by market value sliding more than 6% to fall below $19,000 for the second time in two weeks, Bloomberg reports. More volatile altcoins did worse, with Avalanche and Polygon each falling more than 10%.
But some investors remain highly interested. A
Crypto accounted for less than 10% of overall investments for 65% of respondents but allocations varied, with 15% holding more than 25% of their total financial investments in digital assets, according to the survey. The majority of respondents were short-term investors, with 77% normally holding crypto for less than a year.
The Flourish and DACFP partnership is the latest effort to bolster digital asset education in wealth management. Earlier this year,
Interaxis began in 2019 as a YouTube channel for CFP Adam Blumberg and financial analyst Ron Dixon to explain the world of blockchains, cryptocurrencies and decentralized finance. As the platform grew, Blumberg closed his RIA to work full time on digital asset education.
With the merger, Interaxis gains the continuing education courses for accountants developed by CPE World, which was launched in 2001 by Steven Larsen, a CFP and certified public accountant. Bringing the two together under the Interaxis brand will allow them to serve a wider range of professionals.
