Crypto for Advisors Advisors Embrace On-Chain Support and Pivot to the Future

Revolutionizing Advisor Support How Crypto is Paving the Way for On-Chain Adoption

In the ever-evolving world of digital assets, there’s a constant influx of new investment opportunities. It’s like trying to keep up with the latest dance moves – you never know what move they’ll bust out next. But fear not, my fellow investors, because we have the incredible Miguel Kudry from L1 Advisors here to guide us through the dance floor of investment models. Get ready to tango with some digital assets!

Now, before we dive into the nitty-gritty, let’s set the stage. You’re reading Crypto for Advisors, CoinDesk’s weekly newsletter that unpacks digital assets for financial advisors. It’s like a backstage pass to the world of digital assets – so don’t forget to subscribe, because we’re about to drop some serious investment knowledge.

So, what are advisors doing to support clients’ digital asset investment requirements? Well, let me tell you, the discourse on digital assets has undergone a significant transformation in recent years. It’s like going from a small, intimate gathering to a full-blown dance party. At first, financial advisors were skeptical, questioning the investable value of these assets and whether they belonged on the dance floor of diversified portfolios. But now, even the most cautious investors have allocated a little something-something to digital assets, like those cool dancers who can’t resist shaking their hips to the beat.

But here’s the catch, my friends. The existing investment vehicles have failed to address the true desires of investors – to own these tokens directly. It’s like going to a dance party but being forced to watch from the sidelines. So, the industry rolled out products that offered different levels of exposure to digital assets, like publicly-listed ETFs, index funds, and trusts. It was a step in the right direction, but there was still something missing – the ability to dance like nobody’s watching.

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But fear not, because the introduction of Separately Managed Accounts (SMAs) opened the door to a more genuine dance experience. It’s like finally stepping onto the dance floor, feeling the rhythm in your bones, and busting out those killer moves. With SMAs, investors can now track the actual performance of the underlying assets and fully embrace the ownership of digital assets.

Now, let’s talk fees. We all know those pesky fees can put a damper on any dance party. And sadly, the same goes for digital assets. Many investment vehicles came with high fees, like a pricey entrance fee that keeps increasing every time you try to join the party. So, a savvy segment of investors took matters into their own hands and went the self-directed route. They became the dance masters of their own portfolios, independently managing and investing in digital assets with style and flair.

This shift towards self-direction has caught the attention of advisors. They can feel the ground shaking beneath them as their roles are about to change, and a new chapter in advisor-client dynamics begins. It’s like going from being a chaperone at a school dance to becoming Fred Astaire, guiding your clients through the dance of digital assets.

But no party is complete without a little custody talk. It’s like the coat check of the digital asset world – you want your assets to be safe and sound while you’re tearing up the dance floor. So, advisors have a fantastic opportunity to meet their clients where they already are and incorporate these assets into their financial plans. It’s like giving your clients their very own VIP backstage pass, complete with security.

Let me introduce you to some advisors who are killing it on the dance floor of digital assets. First up, we have Nick Rygiel, the owner and financial advisor at Ironclad Financial. He works with self-custodied clients, helping them unleash their dancing potential and providing recommendations for transactions they can execute on-chain. It’s like having your own personal dance instructor who knows all the best moves.

Next, we have Lumida Wealth Management, who are going after a whole new segment of clients – the crypto-native individuals and institutions. These dance floor legends have generated most of their wealth on-chain and have their treasuries and capital locked in the groove of digital assets. But they still need the same financial planning, risk management, and investment management expertise as traditional clients. It’s like teaching some seasoned dancers a few new tricks while keeping the rhythm going.

My friends, we are long past the debate of whether digital assets are an investable asset class. It’s like arguing about whether the DJ should play your favorite song – pointless. The real question is how tokenization will change the dance floor of the business world. Think about it, other asset classes are becoming digital assets themselves. It’s like watching the whole dance party move from the ballroom to the cloud. And that move is happening as we speak, with billions of dollars worth of assets being locked on-chain. It’s like a dance revolution, my friends.

But here’s the best part, brace yourselves for the surge. Wealth and asset management firms are launching on-chain investment solutions, so get ready to witness the migration of trillions of dollars worth of assets onto the dance floor of digital assets. It’s like a whole new world of possibilities opening up before our eyes.

So, my fellow investors, grab your dancing shoes and get ready for the dance party of a lifetime. The opportunities in the world of digital assets are vast, and the rhythm is infectious. Don’t be a wallflower – join the movement, embrace the future, and dance your way to financial success.

Now, who’s ready to bust a move on the dance floor of digital assets? Let’s hear your thoughts in the comments below. And remember to subscribe to Crypto for Advisors, because we’re about to drop some more investment knowledge that will have you dancing all the way to the bank.

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