Financial Advisors Wary of Reputational Risk in Digital Assets, But Seek More Education as Their Own Firms Shift Toward Crypto Post-Election, New CoinShares Study Reveals

Rhea-AI Summary

CoinShares (Nasdaq Stockholm: CS; OTCQX: CNSRF) released a survey revealing financial advisors' concerns about digital assets. The study of 250 advisors shows 62% believe recommending Bitcoin conflicts with fiduciary duties, while over half worry about negative impacts on colleague relationships.

Key findings show that 74% of advisors face pressure between traditional financial goals and cryptocurrency integration, while 79% see their role shifting towards risk management. Following SEC's approval of Bitcoin and Ethereum ETFs, 88% of advisors are more optimistic about digital assets, with 62% citing SEC approval as a top factor in presenting digital assets to clients.

The survey also revealed that 85% of advisors noticed organizational sentiment toward digital assets has changed post-election, with 80% reporting more positive client attitudes. While 43% see biased information from crypto firms as a barrier, over 80% of advisors are willing to pay for education to enhance their digital asset knowledge.

Positive

• 88% of advisors more optimistic after SEC's ETF approvals
• 80% report improved client attitudes toward digital assets
• 85% note positive organizational sentiment shift post-election
• Strong advisor interest in education with 80%+ willing to pay for training

Negative

• 62% of advisors believe recommending crypto conflicts with fiduciary duty
• 53% rank volatility as a top concern for digital asset investments
• 43% cite biased information from crypto firms as a barrier to understanding
• 74% report conflicts between traditional goals and crypto integration

Insights

Market Research Analyst

This comprehensive survey reveals a pivotal transformation in the institutional approach to digital assets, with several critical implications for the market:

Institutional Adoption Catalyst: The 88% advisor optimism following SEC ETF approvals signals a potential acceleration in institutional digital asset integration. This shift could significantly impact CoinShares' market position, as the firm's established European presence and educational focus position it favorably to capture growing U.S. market share.

Market Evolution Indicators: The post-election sentiment shift, with 85% of organizations showing changed attitudes toward digital assets, suggests a broader institutional acceptance phase is underway. This could lead to:

• Increased demand for professional digital asset education and services
• Growing institutional allocation to digital assets
• Enhanced opportunities for established digital asset firms to expand their institutional client base

Strategic Market Opportunity: The survey identifies a important market gap - 43% of advisors view biased information as a barrier, while over 80% are willing to pay for education. This presents a significant revenue opportunity for established firms like CoinShares to develop and monetize educational resources.

Risk Management Evolution: With 79% of advisors shifting towards risk management roles as clients independently pursue crypto investments, there's an emerging need for sophisticated risk assessment tools and services. This trend could drive new product development and service offerings in the institutional digital asset space.

Advisors' Reputational Concerns are Most Prevalent at Firms Who Lack Clear Guidance Regarding Digital Assets

SAINT HELIER, Jersey, Feb. 11, 2025 /PRNewswire/ -- CoinShares International Limited ("CoinShares" or the "Company") (Nasdaq Stockholm: CS; US OTCQX: CNSRF), a global investment firm specializing in digital assets, today released a survey showing that financial advisors weigh their professional reputation among colleagues almost as heavily as their fiduciary duty when determining the suitability of digital assets for their clients.

Sixty two percent of advisors believe recommending a speculative asset like Bitcoin does not align with their legal obligation to act in their client's best interest, and more than half of the 250 advisors surveyed worry that recommending digital assets could have a negative impact on their relationships with their colleagues.

The growth of ETFs approved by the Securities and Exchange Commission, the outlook for a potentially more favorable regulatory climate as well as clients' desire to independently invest in crypto, is leading advisors to reassess how they address challenges in navigating the evolving digital asset landscape. At the same time, sentiment within their own organizations has shifted toward crypto and their clients are showing more enthusiasm toward the emerging asset class since the U.S. Presidential election.

Navigating these tensions is leading advisors to seek additional resources to close their own knowledge gaps on digital assets; the survey found that advisors' fears about conflicts with both audiences are amplified when they feel they don't have clear guidance from their own firms regarding digital assets.

Jean-Marie Mognetti, CEO of CoinShares, commented: "Advisors are caught in a challenging position, trying to navigate conflicting positions between their colleagues and clients. Clear guidance, both at a firm level and at a regulatory level, will be essential to navigating this divide in 2025. Since 2014, CoinShares has been committed to educating financial advisors in Europe about this emerging asset class, and we look forward to continuing that mission in the U.S."

Key takeaways from the survey include:

• Advisors face conflicting pressures. 74% of respondents say the pressure to align with traditional financial goals conflicts with the push from cryptocurrency firms to make digital assets a core portfolio component. Additionally, as clients pursue cryptocurrency investments independently, 79% of advisors believe their role is shifting towards risk management.
  
  
• Advisors feel their clients underestimate volatility as a risk. 53% of advisors rank volatility as a top concern when assessing challenges in advising clients on potential digital asset investments.
  
  
• Regulatory approval is the key catalyst. 88% say the SEC's approval of Bitcoin and Ethereum ETFs has made them more optimistic about digital assets, and 2 out of 3 advisors (62%) say SEC approval is one of the top three factors that impacts their ability to present digital assets as investment opportunities to clients.
  
  
• Advisors want to learn more but find biased information a significant barrier. More than eight out of 10 advisors surveyed are willing to pay for education to enhance their knowledge of digital assets. However, 43% see crypto-native firms publishing biased information as a barrier to further understanding.
  
  
• Shift in attitudes towards digital assets following the election. 85% of advisors say the sentiment of their organization toward digital assets has changed since the election; while 80% noted clients have more positive attitudes towards digital assets and 85% say the election impacted how they are advising clients on portfolio diversification.

Jean-Marie Mognetti, CEO of CoinShares, commented: "Investor interest in digital assets has been growing for more than a decade, but has been historically niche; we are now at an inflection point where mainstream adoption is a reality. Financial advisors are rapidly developing their expertise in digital assets to address potential knowledge gaps and better align with client needs."

The CoinShares survey polled 250 advisors who work full time and are responsible for providing advice on investments and portfolio management. They hold Series 7, 63, or 65 licenses, work for a wealth or investment management firm or brokerage firm and provide advice on at least three investment types. The survey results are subject to a margin of error of ±6.2%, adhering to rigorous standards of statistical reliability.

For more information about the survey, visit: https://coinshares.com/us/resources/ria-survey/ 

ABOUT COINSHARES

CoinShares is a leading global investment company specialising in digital assets, that delivers a broad range of financial services across investment management, trading and securities to a wide array of clients that includes corporations, financial institutions and individuals. Focusing on crypto since 2013, the firm is headquartered in Jersey, with offices in France, Sweden, Switzerland, the UK and the US. CoinShares is regulated in Jersey by the Jersey Financial Services Commission, in France by the Autorité des marchés financiers, and in the US by the Securities and Exchange Commission, National Futures Association and Financial Industry Regulatory Authority. CoinShares is publicly listed on the Nasdaq Stockholm under the ticker CS and the OTCQX under the ticker CNSRF.

For more information on CoinShares, please visit: https://coinshares.com Company | +44 (0)1534 513 100 | enquiries@coinshares.com Investor Relations | +44 (0)1534 513 100 | enquiries@coinshares.com

PRESS CONTACT

CoinShares
Benoît Pellevoizin
bpellevoizin@coinshares.com

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SOURCE CoinShares Group

FAQ

What percentage of advisors are optimistic about CNSRF digital assets after SEC ETF approvals?

88% of advisors became more optimistic about digital assets following the SEC's approval of Bitcoin and Ethereum ETFs.

How has the 2024 election affected advisor sentiment towards CNSRF digital assets?

85% of advisors reported their organizations' sentiment toward digital assets has changed since the election, with 80% noting more positive client attitudes.

What percentage of financial advisors see conflicts between CNSRF crypto and fiduciary duty?

62% of advisors believe recommending speculative assets like Bitcoin does not align with their legal obligation to act in their client's best interest.

How many advisors are willing to pay for CNSRF digital asset education?

More than 80% of advisors surveyed are willing to pay for education to enhance their knowledge of digital assets.

What is the main regulatory catalyst for CNSRF advisor adoption of digital assets?

62% of advisors cite SEC approval as one of the top three factors impacting their ability to present digital assets as investment opportunities to clients.