Cryptocurrency Resources for Financial Advisors

Cryptocurrency received mainstream attention in 2020 and now takes up significant airtime in the financial press.

Due to all the euphoria around crypto investing, many financial advisor’s clients and/or client’s heirs now own it.

Like many other veterans of the financial services industry, this isn't my first rodeo experiencing the euphoria around a new era of innovation and technology, i.e. the dot com boom during the second half of the 1990s and subsequent bust of the early 2000’s.

As the regulatory framework continues to evolve, obviously cryptocurrency will continue to experience additional growing pains.  From an advisor’s perspective though, it will simply continue to be another investment category that advisors can outsource to third parties or eventually manage the portfolios themselves, similar to how advisors allocate to equities.

For financial advisors who may just be scratching the surface and would like a short list of resources, I’ve included a few below that I’ve used personally or am familiar with.  In addition to those listed below, I’ve also used trading exchanges Coinbase and Binance.

ITrustCapital is a digital asset IRA trading platform I have used since February, 2021.  I've had a good experience with it and the online interface is very user friendly.  It can be a good way to gain exposure and experience owning and trading cryptocurrency without having to deal with the capital gains taxes of a non-qualified account.

Blockchange is an SMA platform of digital asset managers for financial advisors.

DACFP is an industry organization dedicated to financial advisor education and certification around digital assets.

Founded by former Goldman Sachs trader and hedge fund manager, Mona El Isa, Enzyme has set out to democratize asset management. 

Enzyme users can allocate funds to asset managers who specialize in managing cryptocurrency portfolios or start a fund of their own for a relatively low cost. 

Track record of portfolios on the Enzyme platform are automatically calculated and made public.  Trades are transparent and reported as are current holdings.

By Mike Bean     June 2021

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