Advisors and investors need to decide how much cryptocurrency in a portfolio is suitable, he said. “If you have 10% of a portfolio in cryptocurrency, you may have a risk and volatility problem; but if you have only 1% in cryptocurrency, it is not adding much in returns.” Sood said. “But the things we take for granted for mainstream investments are now available in cryptocurrencies.”
They all agreed more education is necessary for both advisors and investors since different cryptocurrencies and the networks they run on present varying opportunities and risks. Miami-based Eaglebrook Advisors, a tech-driven investment manager that provides a separately managed account platform for cryptocurrencies, has launched Eaglebrook IQ, a crypto educational platform for financial advisors. The platform provides training and education for Eaglebrook advisors on the digital asset market.
“We strongly believe that financial advisors need to be educated on the crypto market before investments are made in the asset class. Eaglebrook IQ will educate financial advisors and through them, their clients, on the emerging digital asset class,” Christopher King, CEO of Eaglebrook Advisors, said in a statement.