Only 27% of UK wealth managers feel equipped to advise their clients on crypto, far behind the global average of 47% and the US at 63%.
This is according to research from Avaloq which also found 33% of UK wealth managers express interest in incorporating crypto and digital assets in their investment proposals compared to 60% globally, and 79% in the US.
This reluctance persists despite 49% of UK wealth managers having acknowledged the rising client demand for crypto.
Avaloq said this indicates an “enormous opportunity for UK wealth managers to embrace cryptocurrencies as part of their offering”.
Additionally, 40% of investors said they avoid crypto investing due to a lack of trust in current exchanges.
Another 10% cite the absence of crypto services from their wealth manager as the reason they have not invested.
Avaloq UK managing director Suman Rao 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.
“Wealth managers must take proactive steps to modernize their approach to digital assets. This includes building internal expertise and investing in the technology to support clients in buying and selling cryptocurrencies and seamlessly incorporating digital assets into their portfolios.”
In order to obtain these results, Avaloq spoke to 456 wealth managers professionals (relationship managers, financial advisers and portfolio managers) and 3,000 investors.
On 20 October, BlackRock listed its iShares Bitcoin ETP on the London Stock Exchange, giving UK retail investors access to bitcoin exposure through traditional trading accounts for the first time.
The exchange traded product is 100% physically backed by bitcoin held directly via Coinbase, removing the need for investors to manage private keys or digital wallets.
BlackRock said the launch responds to growing UK demand for cryptocurrency, with investor participation rising at an annualised rate of 12% since 2022.
Research from its People & Money: The Next Wave of Crypto Investors in the UK report predicts a 21% increase in first-time crypto investors over the next 12 months, with the UK ranking third in Europe for crypto investment growth.
