Bitcoin mania takes off as client calls bombard advisers
“Wealth managers across the US are fielding calls and e-mails from clients worried they’re missing out on something big by not owning bitcoin. While most advisers don’t recommend buying such a volatile asset with no intrinsic value, they do have tips for clients who have taken the plunge, or are dead set on doing so.
“The cryptocurrency has been whipsawing Wall Street: UBS Group AG, the world’s largest wealth manager, is shunning bitcoin allocations because of a lack of government oversight, while Michael Novogratz is starting a $500mn hedge fund to wager on digital assets. As bitcoin mania moves to Main Street, thanks to its spectacular rise from about $750 to $8,200 in a year, five advisers offer some suggestions.
“Kotok, whose Sarasota, Florida-based firm manages about $3bn for high net-worth clients, warns them off bitcoin, calling it a classic momentum trade. But for investors who own it and brag about the gains, he advises them to take their original investment off the table. Better to gamble with house money.”
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