UK wealth managers are falling behind in supporting clients with crypto investing, according to Avaloq.
Research conducted among 300 wealth managers and 3,000 investors found that UK professionals lack confidence when advising clients on crypto assets.
Only a quarter (27%) of UK wealth managers feel equipped to advise their clients on crypto, significantly below the global average of 47% and 63% in the US.
Avaloq’s research also showed lower interest in offering crypto investing, with just a third (33%) of UK wealth managers expressing interest in incorporating crypto and digital assets in their investment proposals compared to 60% globally and 79% in the US.
This reluctance persists despite half (49%) of UK wealth managers acknowledging rising client demand for crypto.
However, four in 10 investors (40%) say they avoid crypto investing due to a lack of trust in current exchanges, while another 10% cite the absence of crypto services from their wealth manager as the reason they haven’t invested.
Suman Rao, managing director at Avaloq, said: “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.”
Rao said 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 incorporating digital assets into their portfolios, he said.
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