Roughly two out of three fund managers don’t think individual investors should own cryptocurrencies in their portfolios, according to a new survey by Natixis Investment Managers.
Fund managers at brokerage houses, financial advisory firms, private banks, and other institutions analyze and choose the investments their firms offer customers.
Sixty-eight percent (68%) of those fund managers say they don’t think individuals should have access to cryptocurrencies, according to the survey, which polled 141 U.S. investment executives at firms that manage $2.7 trillion U.S. in client assets.
However, that sentiment is butting up against high demand for digital currencies such as Bitcoin (BTC) and Ethereum (ETH), especially among younger investors. A total of 40% of survey respondents say that clients are increasingly asking for cryptocurrency access.
Cryptocurrency exchanges marketed heavily during the Super Bowl and proponents such as Tesla (TSLA) chief executive Elon Musk have also helped fuel investor enthusiasm for digital tokens.
Investment professionals’ reluctance is largely due to challenges they see relative to cryptocurrency transparency and an apparent lack of regulation. About 87% of fund managers agree that cryptocurrency assets need to be more transparent, and 84% think they will need some type of regulatory oversight going forward.
About 70% of fund managers also conceded that their firm needs more education in digital assets and cryptocurrencies before investing in them.
Financial advisors generally don’t recommend clients allocate more than a small part of their investment portfolio to cryptocurrencies, given their volatility. Bitcoin prices have fallen to around $43,000 U.S. per coin from a peak of $67,000 U.S. last November.
