Bitcoin and its ilk have made for an exciting investment story – but are advisors and asset managers ready to get on board?
“We recognize cryptocurrencies’ growing importance for payments while monitoring the infrastructure development, consistent with the Bank of Canada’s 2017 research paper suggesting that central banks proceed incrementall and cautiously. We balance innovation with a thoughtful approach to launching ETFs, considering investor expectations, portfolio construction, trading and liquidity.
While the potential of cryptocurrency ETFs is compelling, the underlying valuation is difficult to assess, and cryptocurrencies have proven highly volatile. While innovation benefits investors, we prefer to let this market mature further before considering an ETF.”
“I would not be putting significant amount of personal wealth [into this space] unless you are intimately engaged – maybe a developer or a technologist who is in the space already. I do think people should have exposure to it, but my view is that Bitcoin and things like that are not necessarily things you want to be chasing.
I do think Bitcoin has a shot as a store of value in the long run just because it was the first [cryptocurrency]. You don’t know about anything in the crypto space unless you know about Bitcoin, and therefore it has an allure to it.”
“No – not as an advisor, and not as a person.I don’t have any connection with it or interest in it.
People have strange or sometimes unreal expectations of portfolio performance; I see myself as a relationships manager. My job is to sit down with my clients, listen to them and what’s important to them, and put a plan together that addresses that. I like boring investment options that have a consistent track record.”