In today’s fast-evolving financial landscape, there’s one asset that many advisors aren't discussing: Bitcoin.
For decades, financial advisors have been the go-to experts for guiding investment decisions. They typically recommend traditional assets like stocks, bonds, and real estate—the familiar pillars of wealth-building. But in today’s fast-evolving financial landscape, there’s one asset that many advisors aren't discussing: Bitcoin.
Despite its notable growth, having been up over 500% in the last five years and 40% year-to-date, a survey conducted by Cerulli Associates reveals that only 2.6% of financial advisors actively recommend crypto opportunities to their clients. Furthermore, just 12.1% of advisors are even willing to discuss crypto if their clients request it. This data suggests that Bitcoin is not a topic most advisors are comfortable or familiar with, leaving many investors unaware of its potential.
So, why aren’t more financial advisors talking about Bitcoin? Is it because they’re unaware of its value, or is it because Bitcoin doesn’t fit neatly into the traditional investment playbook? In this article, we’ll explore why Bitcoin is gaining attention from some investors and why it might be worth considering in your portfolio.
Bitcoin has evolved beyond its early stages and is increasingly being recognised as an asset that has gained attention from institutional investors, corporations, and even governments. What began as a niche experiment in digital currency has now developed into an asset class that continues to grow in acceptance. With the approval of numerous Bitcoin ETFs, we see that it has begun to be acknowledged as a part of the financial landscape.
Here are some considerations that may explain why more Australians are exploring Bitcoin:
High Growth Potential: While property and stocks have shown steady gains over the years, Bitcoin’s growth has been significant. Early adopters have seen substantial returns, and its rise has attracted investors looking for high-yield opportunities.
Institutional Adoption: Bitcoin’s credibility has increased as more financial institutions, companies, and even governments have started to embrace it. This adoption signals a broader interest in digital assets in global finance.
Hedge Against Inflation: With inflation rates rising, protecting the value of your money has never been more important. Bitcoin’s fixed supply and decentralised nature can make it appealing as a hedge against the declining value of fiat currencies.
Decentralised and Secure: Unlike traditional investments that are often influenced by government regulations and market forces, Bitcoin operates on a decentralised network that is designed to be secure, transparent, and resistant to manipulation. This provides investors with a sense of control over their assets.
Despite its perceived advantages, many financial advisors still steer their clients away from Bitcoin. The Cerulli Associates survey data confirms this trend, with only a small percentage of advisors willing to discuss or recommend crypto investments. Here are a few reasons why this might be the case:
Conservatism: Financial advisors often stick to familiar assets like stocks, bonds, and property. Bitcoin’s volatility and its relatively new status as an asset class can make them cautious about recommending it to risk-averse clients.
Lack of Understanding: Cryptocurrency is a rapidly evolving field, and not all advisors have the expertise to fully understand digital assets like Bitcoin. Without a deep knowledge of the technology and its market dynamics, they may be reluctant to endorse it.
Fee Structures: Traditional investments often come with management fees or commissions that benefit financial advisors. Since Bitcoin is a decentralised asset that can be bought and held directly without intermediaries, advisors might be less inclined to promote it due to its impact on their revenue model.
Transparent and Competitive Pricing: We believe in fair pricing with no hidden fees, allowing you to focus on growing your portfolio without worrying about unexpected costs.
Flexible Storage Solutions: Whether you prefer to keep your crypto in a secure custodial wallet or have full control with self-custody, Elbaite offers both options to meet your needs.
A Trusted Platform for Australians: As a fully compliant exchange, Elbaite ensures your transactions are secure and in line with Australian regulations, making it easy to trade Bitcoin with confidence.
Breaking the Status Quo: Taking Control of Your Financial Future
Bitcoin’s growing adoption by financial players is a signal that the landscape of investing is evolving. While your financial advisor may not always cover all emerging assets, it’s up to you to stay informed.
At Elbaite, we’re here to support your journey into digital assets with the insights and tools you need. Join over 17,000 Australians who are exploring Bitcoin with Elbaite.
The information provided by Elbaite is for general educational purposes only and should not be considered as financial or investment advice, a personal recommendation, or an offer to buy or sell any assets. It is prepared without taking into account individual financial objectives, situations, or needs and does not claim to address legal or regulatory requirements. We encourage users to conduct their own independent research and seek advice from qualified professionals before making any financial decisions.
Elbaite makes no representation and assumes no responsibility for the accuracy or completeness of the information provided. Past performance is not indicative of future results, and should not be relied upon as a predictor of future performance. Before engaging in any trading activity, ensure you fully understand the associated risks and never invest more than you are willing to lose. Please review our Terms and Conditions (https://www.elbaite.com/terms-conditions) for more information.