Wealth Managers Demand Crypto Clarity From Regulators
Last Updated on 23 March 2021 by CryptoTips.eu
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.
22% of Goldman Sachs' clients now expect #bitcoin to reach $100,000 within a year.
— Documenting Bitcoin š (@DocumentingBTC) March 5, 2021
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 canāt because of regulatory hurdles.
Frustrating to advisors
What I like about bitcoin isā¦ 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.
Goldman Sachs' new client survey on digital assets shows 22% of respondents expect the price of bitcoin to be over $100,000 in 12 months and more than half think the cryptocurrency will stay in the $40,000-$100,000 price range: by @ninabambysheva https://t.co/GyQN0hwyuo
— Forbes Crypto (@ForbesCrypto) March 5, 2021
Not allowing the purchase of cyrpto is something thatās frustrating to many advisors, but itās 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 oneās 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