A recent study published by digital asset services provider CoinShares has revealed a significant blind spot among financial advisors in the United Kingdom: a large portion are unable to fully monitor their clients’ crypto holdings. According to the research, 52% of UK advisors admit that the majority of their clients’ digital assets lie beyond their oversight.
The scale of the issue
Released Thursday, the survey captures the views of 261 wealth management professionals across Europe. While the UK figure stands at 52%, the corresponding average across France, Germany, Italy, and Switzerland is markedly lower at 25%. In addition, 61% of all participants reported that their employers either explicitly limit digital asset exposure or lack clear internal guidelines for handling them.
CoinShares co-founder and CEO Jean Marie Mognetti stated that while clients’ capital has already found its way into crypto, those responsible for managing these assets often cannot see them at all. He emphasized that the issue is not a lack of information or weak client demand, but a result of increasingly restrictive internal company policies.
CoinShares, a Europe-based digital asset investment firm recognized for its institutional products and market analytics, assesses that while client interest in crypto investments remains robust, internal corporate policies are hampering advisors’ ability to gain a comprehensive view of their clients’ portfolios.
Key findings from the study underline the severity of the disconnect: in the UK, 52% of advisors reported being unable to see most client crypto holdings, compared to just 25% across Europe as a whole. Moreover, a combined 61% cited internal company restrictions or guidance gaps as major obstacles.
Regulatory context and investment trends
The UK’s Financial Conduct Authority (FCA) announced in December that approximately 8% of UK adults have invested in crypto assets. In a recent policy proposal, the FCA also suggested allowing authorized investment funds to allocate up to 10% of their portfolios to crypto exchange-traded notes.
These developments indicate parallel momentum between individual investor enthusiasm and evolving regulatory discussions. However, CoinShares’ research highlights that while investor interest is on the rise, these trends are not fully reflected in advisor practices due to prevailing in-house policy barriers.
Potential political shifts and the future of crypto policy
The article also points to political changes in the UK: Labour Party leader Keir Starmer has stepped down as Prime Minister, setting the stage for a new leadership contest within the party.
Andy Burnham, newly elected to Parliament in a by-election, is touted as a front-runner to succeed Starmer. Burnham’s national stance on crypto remains unclear; however, during his time as Mayor of Greater Manchester, he supported blockchain as an avenue for economic growth.
The research underscores that while client capital has already entered the market, many advisors remain unable to adequately track these positions due to restrictive company policies.
In conclusion, the CoinShares report raises important questions about the ability of UK advisors to serve clients with significant crypto exposure. Despite clear interest from both investors and regulators, advisors confront considerable challenges navigating company-imposed roadblocks and limited transparency.
As the regulatory environment continues to develop and political changes loom, how advisors and financial institutions adapt their policies will prove pivotal for the future integration of digital assets into mainstream wealth management in the UK.
