“Slow your client down,” wrote Jim Helik in his excellent piece on how to talk with clients about cryptocurrencies last week. “Anything you can do to stall a decision, while providing them good information about what they may be getting into, will probably benefit them in the long run.”
Sound advice. As frustrating as these discussions can be, they’re better than no dialogue at all. Too often, clients buy crypto without seeking your guidance. The ease with which they can do so digitally encourages investors to consider the transaction in isolation of their broader portfolio.
If the most current national data (collected by the Ontario Securities Commission in the spring of 2023) is indicative, about 10% of your clients have bought one or more coins. Roughly twice that amount are thinking about it. So if you’ve been hesitant to make it part of portfolio reviews because you’re concerned about lending crypto legitimacy, it’s time for a second thought.
We’re having one of our own on the subject. Advisor.ca’s crypto coverage has taken two forms, generally speaking. James Langton has done important reporting for us on the regulatory front. And we’ve tracked the rise of popular assets like Bitcoin, particularly in light of U.S. president-elect Donald Trump’s newfound support for the category.
We’ll keep up with both, of course. But given the potential hazard these made-up currencies represent, it seems to us that Canadian financial advisors would benefit from a more fulsome, open dialogue on crypto. Please consider our platform one that you can use for questions, opinions and maybe a war story or two.
