How Advisors Can Become Comfortable with Cryptocurrency

 

 Recorded at the Envestnet Advisors Summit 2022.  Presented by:

Advisorpedia interviewed Rayhaneh Sharif-Askary, Managing Director Investor Relations at Grayscale, at the Envestnet Advisor Summit in May, 2022.

Resources: Grayscale

Related: The Biggest Mistake Advisors Make with FinTech

 

Transcript:

Cryptocurrency is a unique and emerging asset class, which has a few characteristics that make it really interesting. You have the upside associated with the technology. It's an uncorrelated asset class. And it's also scarce, which makes it a good store of value asset, which is why a lot of advisors Think about it like digital gold, we work for grayscale we're the world's largest digital digital currency asset manager. . .

And we talk to advisors basically every day helping them frame cryptocurrency in the context of their clients portfolios to get comfortable with cryptocurrency and for advisors to really be prepared to help their clients navigate the space, the first thing they need to do is really think about educating themselves.

And that's really one of our big missions. We've created webinars various content, to help advisors get up to speed and we also are available and talk to advisors every day and answer their questions so that they can be set up to help out their clients.

One of the things that advisors struggle with is getting access to the asset class in a way that fits within their frameworks. And that's compliant from a regulatory perspective. And so what we've done, our mission is to create access products for advisors and other investors to get access to cryptocurrency, which is a digital bearer asset in a wrapper that people are familiar with, which is a stock so we've created 18 products, nine of which trade publicly on OTC Markets. And these products are have are backed by underlying crypto currencies like Bitcoin.

And advisors can buy these products for their clients through any brokerage account. So Schwab, Fidelity, and like so we have a four stage product lifecycle. Our goal is to turn each one of our products into ETFs. You might have seen we have an application outstanding with the SEC to turn GBTC our flagship product into an ETF and that is our priority and goal in the near term.