Only 1% of financial advisors frequently engage in discussions about cryptocurrency with their clients, primarily due to concerns about potential legal liabilities and associated expenses if the investment goes wrong.

A report by CoreData found that 89% of financial advisers in Australia have never provided advice on cryptocurrency, citing issues with professional indemnity insurance coverage as a significant factor. Other reasons for advisors’ reluctance include the prevalence of scams in the cryptocurrency space, limited information compared to traditional assets, the absence of historical performance data, and the lack of clear regulations. Despite these challenges, CoreData believes that there is an opportunity for advisory firms to specialize in or enhance their understanding of this emerging asset class.