people with financial advisors:
at what stage do they face negligence for not having allocated to even a tiny amount of aum to bitcoin?
Discussion
Maybe a year ago
In deep normieland, probably never…
It would probably be close to impossible to actually sue an advisor for not allocating to bitcoin because of how volatile it is in fiat terms. To win the suit would require the recommendation of a security or strategy which is not appropriate for the customer and most high net worth people that actually have advisors aren’t willing to see that type of volatility.
Also I’m not a lawyer, this is not financial advice, and source: I made it up
i use the word negligent, but im not talking about a lawsuit per se.
but more a normal person realizing that they’re paying a person to manage their risk.
Then sitting down with their advisor and saying some like, “Frank ….what the fuck?! How did you never add any bitcoin exposure to my portfolio.”
It’s not even on the client’s mind yet in my experience. I think it’s partially due to none of the large banks shilling it yet for client portfolios so most clients are still not even aware it’s an option. She just had a client meeting where the guy was upset with 15% returns year to date and wanted her picking specific stocks (Amazon, etc.) instead. She has never had a client ask specifically about bitcoin. I doubt that will happen until it depegs from the s&p. The only seldom mention so far has come from a potential client at a seminar. And it was a crypto ask, not bitcoin specific. Even if a client asked, the banks that actually do offer allocation only offer it to ultra high net worth right now and at that, I don’t know if it’s custodial, probably an IOU or derivative.
I think we’re still just so far from mainstream medium-high net worth knowing they need an allocation asap. I believe this won’t happen until blackrock get’s their etf. A lot of advisors simply sell whatever product their employer tells them to.
Unfortunately for those customers, probably means they’ll get wiped out from their bond allocation and they’ll get in when it’s too late (in their minds, it’s never too late imo!) EOD they’ll lose a lot of purchasing power.