Advisers: what do they say when a client asks for Bitcoin in their portfolio?

From

Grant Colthup

Australia’s newest crypto exchange and broker wants to help advisers manage the ‘Bitcoin question’.

Mine Digital CEO, Grant Colthup, believes more advised clients will seek to broaden their portfolios to include digital currencies. He is seeing more investors seeking bid prices for buying Bitcoin or one of the other cryptocurrencies.

“The Bitcoin/crypto question will start a new conversation for advisers with clients. Early-adopter clients will want to trade as a news asset class or simply want to dip their toe in a new asset pond.

“Either way, safety must be the highest priority when looking at digital assets because storage is not as automatic as custody at the ASX. Bitcoin is not on an APL nor is there research to cover the purchase.”

There are several players in the digital asset and crypto space. Investors should consider offerings with insured custody or alternative ways to secure their portfolio holdings themselves.

The main points to consider in using an exchange are:

  1. Stability of the platform
  2. Insured custody
  3. The team behind the exchange – expertise
  4. Research capacity and access to emerging projects
  5. Market competitive rates coupled with liquidity and tight spreads

“The exchange that your clients choose must be secure, robust and offering risk-managed crypto. It must be a reliable gateway to the world of cryptocurrency and digital assets as they intersect with blockchain technology and new Coin/token offerings that will be offered to investors,” said Mr Colthup.

By Grant Colthup, CEO

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