According to a report by CoreData, only 1% of financial advisors said they frequently discuss cryptocurrencies with clients, citing concerns about heavy legal costs if problems arise with the product, ChainCatcher reported.
In its Australian Cryptocurrency Investor Report, the firm determined that 89% of financial advisors said they had never provided advice on cryptocurrencies, suggesting that professional advice on the subject is scarce.
One of the most prominent reasons advisers don’t talk about cryptocurrencies is the fear of not being covered by professional indemnity insurance (PI). Without PI insurance, advisers face heavy legal costs if a client claims their advice caused financial loss or injury.