UK wealth managers are trailing behind their global counterparts when it comes to advising clients on crypto investing, according to new research from Avaloq.
Avaloq’s research, conducted among over 300 wealth managers and 3,000 investors, finds that UK professionals lack confidence when advising clients on crypto assets. Only 27 per cent of UK wealth managers feel equipped to advise their clients on crypto, far behind the global average of 47 per cent globally and the US at 63 per cent.
Compounding the issue is little current desire to offer crypto investing. Avaloq found just a third of UK wealth managers (33 per cent) express interest in incorporating crypto and digital assets in their investment proposals compared to 60 per cent globally, and 79 per cent in the US.
This reluctance persists despite 49 per cent of UK wealth managers acknowledging rising client demand for crypto. While this is significantly lower than their global (68 per cent) and US peers (77 per cent), it indicates an enormous opportunity for UK wealth managers to embrace cryptocurrencies as part of their offering, the firm says.
Avaloq’s research among UK investors further underlines this potential. Four in 10 investors (40 per cent) say they avoid crypto investing due to a lack of trust in current exchanges. Another 10 per cent cite the absence of crypto services from their wealth manager as the reason they haven’t invested, highlighting a clear gap that trusted financial services providers such as wealth managers could fill.
Suman Rao, UK Managing Director at Avaloq comments: “UK wealth managers are trailing behind their US and global peers when it comes to providing clients with advice on crypto investing, and a lack of confidence is holding them back.
“As the UK’s regulatory landscape becomes more supportive of crypto and digital assets, particularly with the FCA now permitting crypto investments within ISAs, we’re seeing a clear signal that crypto is moving further into the financial mainstream. Crypto offerings will become increasingly important to retaining competitiveness and staying front of mind across all client segments.
“Wealth managers must take proactive steps to modernise their approach to digital assets. This includes building internal expertise and investing in the technology to support clients in buying and selling cryptocurrencies and seamlessly incorporating digital assets into their portfolios.”
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