Thirty K - The rich are increasingly investing in cryptocurrencies, says the wealth management consultancy deVere Group. But that doesn't make the investment any less risky.The company focuses heavily on expat and other clients in more than 100 countries. It has more than $10 billion under management.
But some wealth management observers remain cautious in their appraisals. Cryptocurrencies are not investment-grade assets that prudent investors are likely to use to build a robust portfolio with sustained growth, Michael Guillemette, a certified financial planner and assistant professor in the Personal Financial Planning department at Texas Tech University, tells ThirtyK.
U.S. regulators have deliberately not approved fund structures that replicate stocks, bonds and other established assets, he notes, lest the structures imply a market stability that does not exist. "Consumers would have the false impression that it is somehow safer than it is," he says. Cryptocurrencies counter many, if not most, financial planning best practices in that they are unregulated, volatile and illiquid, he adds.