As BOA embraces crypto, Australian advisers still have some doubts

ifa

On 5 January, the Bank of America (BOA) officially allowed its advisers to recommend crypto currencies where appropriate to clients, specifically the “safe-coin” bitcoin. As reported by ifa sister publication Money Management, in an update for investment advisers at Merrill Lynch, BOA said advisers will be allowed to consider four bitcoin ETFs for between 1-4 per cent allocations for its wealth management portfolios depending on their risk tolerance. BOA also warned advisers of the numerous risks associated with crypto.  

“Crypto assets are highly speculative and have been in existence for only a short period of time. A significant portion of the demand for crypto assets is generated by speculators and investors seeking to profit from short-term holdings,” the bank told advisers. “Media headlines, tweets, or influencers’ opinions can significantly influence performance given the speculative nature of cryptocurrency. Historical prices of crypto assets have been extremely volatile.” 

The rest of this article can be found at ifa.com.au.