Read the latest from Truvius CEO Connor Farley in the August 1, 2024 issue of the Crypto for Advisors newsletter by CoinDesk in the "Ask an Expert" section. Below is excerpted from CoinDesk:

Ask an Expert

Q: Do my Millennial clients want crypto in their portfolios?

A: Not only are Millennial investors interested in crypto, but according to a recent FINRA report, Millennial investors primarily invest in crypto (57% of surveyed investors) compared to mutual funds (43%) and individual stocks (38%). This is a staggering figure suggesting generational conviction in the long-term growth potential of the digital asset class.

Q: What does this mean for advisors?

A: Millennials stand to inherit the largest generational wealth transfer in history ($84 trillion in assets over the next 20 years). With digital assets currently represented in most Millennial investors’ portfolios, it's difficult not to see digital asset adoption accelerating alongside blockchain technology itself.

Advisors must acclimate themselves with digital assets, how to introduce crypto into an overall asset mix, where to access digital asset investment products, and how to easily and compliantly get their clients suitable crypto exposure.

Q: How should I advise on crypto for Millennials?

A: From an investment advisory standpoint, familiarity with only bitcoin and ether is insufficient crypto awareness. It overlooks the broader fundamental value and diversifying properties both within and across the various sectors that comprise the digital asset class. Institutional investors know this and are already seeking multi-asset, actively managed crypto investment products.

Advisors should start by familiarizing themselves with the broader crypto market, including the various sectors (DeFi, Smart Contracts, etc.) and size segments (mega-cap, large-cap, mid-cap, etc.). Then, advisors should identify readily accessible investment products, such as SMAs, that provide diversified portfolios of numerous assets and span passive and active styles. These types of crypto investment products are supported by the time-tested portfolio theory seen with traditional investment strategies. Given the more diversified nature of these products, they reduce single-asset concentration risk and help cater to the gradation of investor risk and return preferences.