Wealth Managers Demand Crypto Clarity From Regulators

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Last Updated on 23 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Earlier this week, Goldman Sachs released the results of a survey among their clients about Bitcoin. It showed that 22% of their clientele expect Bitcoin to reach $100k before the end of the year, while another 50% expect it to remain between $40k and $100k.

In all, 75% of the customers of one of the largest wealth managers in the world expect Bitcoin to grow this year. With all that interest from wealthy people to invest in crypto, asset managers are screaming for regulators to allow them to join in.

In fact, it has gotten so bad that Leuthold Group Chief Investment Officer Jim Paulsen admitted in an interview with Reuters this week that he wants to invest part of his $1 billion AUM (Assets Under Management) into crypto, but simply can’t because of regulatory hurdles.

Advertentie.

Frustrating to advisors

What I like about bitcoin is… its correlation to stocks and other assets is extraordinarily independent.

Paulsen explained.

Given that the crypto market is still in a bull run, even though Bitcoin and Ethereum are well off their highs, means that investors want to get a piece of the action.

The longer the Biden administration waits to provide clarity whether or not this is allowed, the more frustration will grow, both with institutional investors wanting to get in, and banks wanting to serve their customers.

Coinbase and Kraken

Wealth managers are growing wary with every new record that Bitcoin shatters.

Not allowing the purchase of cyrpto is something that’s frustrating to many advisors, but it’s such a volatile asset that many investors end up doing it on their own.

Explained Jimmy Lee, chief executive of the Wealth Consulting Group.

With the Nasdaq and the S&P500 both flat for the year and the Federal Reserve once again turning on the money printers, investors know that diversifying at least a piece of one’s holding into crypto can serve as a deflation hedge.

Not being allowed to do so because of regulatory hurdles, means that Wall Street is bound to lose clientele to the crypto exchanges. With Coinbase and Kraken eyeing an IPO later this year, things are certainly looking up for them.

SergeyNivens / Depositphotos.com