Wealth Managers Want Clarity on Bitcoin Rules: Reuters

Leuthold Group Chief Investment Officer Jim Paulsen told Reuters he is frustrated by not being able to hold bitcoin for his clients.

AccessTimeIconMar 5, 2021 at 8:58 p.m. UTC
Updated Jan 26, 2024 at 1:54 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Leuthold Group Chief Investment Officer Jim Paulsen told Reuters he is frustrated by not being able to hold bitcoin for his clients.

  • Leuthold Group manages $1 billion but regulatory barriers prevent the firm from holding cryptocurrency.
  • “What I like about bitcoin is … its correlation to stocks and other assets is extraordinarily independent,” Paulsen told Reuters.
  • In lieu of holding the asset itself, wealth managers are clamoring for the approval of bitcoin exchange-traded funds (ETFs) that would meet the legal standards required of traditional investments, according to the report.
  • The U.S. Securities and Exchange Commission (SEC) has not ruled whether mutual funds can own cryptocurrency directly, according to Robert Jenkins, global head of research at Refinitiv Lipper.
  • The report comes as Wall Street players (and their clients) increasingly embrace bitcoin as an asset akin to gold.
  • BNY Mellon announced a crypto custody service last month; Goldman Sachs announced this week it was launching a cryptocurrency trading desk.
  • According to Jimmy Lee, CEO of Wealth Consulting Group, financial advisors are frustrated by not being able to manage crypto for their clients. Many investors end up pursuing it on their own, Reuters reported.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about