UK Wealth Advisors Struggle to Track Clients’ Crypto Investments

A growing number of UK wealth advisors are losing visibility over their clients’ cryptocurrency investments, according to a recent CoinShares survey. The report reveals that more than half of British financial advisors estimate that most of their clients’ digital asset holdings remain outside their professional oversight. Rather than a lack of investor interest or advisor expertise, the study points to restrictive firm policies as the primary cause.

The survey, conducted by Citywire on behalf of CoinShares, gathered responses from 261 wealth professionals across the UK, France, Germany, Italy, and Switzerland. It found that 52% of UK advisors believe more than half of their clients’ crypto portfolios are held outside their advisory relationship, while one in four advisors across Europe reported facing the same issue.

According to the report, the "management gap" refers to cryptocurrency assets stored on personal exchanges or self-custody wallets that advisors cannot monitor. CoinShares found that 61% of advisors work for firms that either restrict digital asset investments or provide no formal guidance. As a result, only 1% of advisors at these firms actively recommend crypto, compared to 48% at firms with supportive digital asset policies. The average unmanaged exposure also rises significantly, reaching 34% at restrictive firms versus just 4% at organizations that embrace crypto investment solutions.

The survey also indicates that advisor confidence closely follows company policy. More than three-quarters of professionals who considered themselves under-informed about cryptocurrency were employed by firms with restrictive digital asset policies. This suggests that internal support and training, rather than individual willingness, determine advisors' confidence in discussing crypto investments.

When asked what would improve their confidence, advisors prioritized regulatory recognition of digital assets as a mainstream investment class, followed by broader access to crypto exchange-traded products (ETPs). Educational resources ranked far lower, highlighting that institutional support remains the biggest obstacle.

The regulatory environment is gradually evolving. The UK's Financial Conduct Authority has already eased restrictions on retail crypto exchange-traded notes and proposed allowing authorized investment funds to allocate up to 10% of their assets to these products. Meanwhile, Europe's Markets in Crypto-Assets (MiCA) framework is moving toward full implementation, creating a more unified regulatory landscape for digital assets.

Italy stands out as an example of stronger advisor engagement, recording the lowest management gap in the survey at just 12%. As cryptocurrency adoption continues to grow and a significant wealth transfer approaches in the UK, firms that fail to integrate digital assets into their advisory services risk losing visibility into client portfolios—and potentially losing those clients altogether.