Clients Shift to Crypto as Brokers Lag in Adaptation

Brokers are increasingly at risk of losing clients as they fail to adapt to the growing demand for cryptocurrency investments. Despite the maturation of the crypto industry in terms of technology, infrastructure, and regulation, only 35% of brokers offer direct access to digital assets. This leaves a majority of clients unmet, especially among high-net-worth individuals who are increasingly allocating portions of their portfolios to alternative assets like crypto [1].

The reluctance of many brokers to embrace crypto is being interpreted as a strategic misstep. Offering exposure to crypto through ETFs alone is seen as insufficient, as it removes key benefits such as 24/7 trading, staking opportunities, and self-custody. This approach limits investors to a passive and incomplete form of participation, which fails to deliver the full value of crypto [1].

The demand for crypto is evolving rapidly, especially among affluent investors. They now expect institutional-grade tools, diversified portfolios, and sophisticated tax strategies. As a result, many are bypassing traditional brokers to access these features directly. This shift is not merely speculative — it is driven by practical needs and evolving expectations [1].

Technological and regulatory environments have also reached a level of maturity that supports secure and compliant crypto participation. Advanced trading systems now support rapid execution, multi-chain price discovery, and AI-driven risk management. Moreover, crypto regulations are progressing at a state level, with the U.S. and EU implementing frameworks such as the Markets in Crypto-Assets Regulation and the GENIUS Act [1].

Despite these developments, some brokers still treat crypto as a niche or speculative asset, rather than a legitimate investment class. This perception is outdated, as crypto is now being integrated into mainstream financial planning. The trend mirrors past shifts in financial markets, such as the rise of tech stocks in the 2000s, which eventually became standard in many portfolios [1].

Goldman Sachs has noted that around 15% of family offices—typically seen as conservative—already have exposure to crypto, with more than half considering expansion into the space [1]. As investors outgrow basic trading platforms, they are seeking more sophisticated tools to manage large portfolios. This includes demand for risk management, tax optimization, and comprehensive reporting—features that are now standard in traditional asset classes [1].

The message from clients is clear: 42% of UK wealth clients plan to invest in crypto outside of their usual broker relationships, signaling a growing frustration with the lack of adaptation from traditional financial institutions [1]. Those who fail to meet these expectations risk not only client attrition but also a loss of relevance in an increasingly crypto-aware market [1].

Anthony Agoshkov, co-founder of Marvel Capital and an experienced executive in algorithmic trading, emphasizes that the preferences of the wealthy often shape the broader financial industry. Brokers that recognize and adapt to this shift now will be better positioned for long-term success. Those who continue to ignore crypto risk watching their clients move on [1].

Source: [1] Brokers are losing clients by ignoring cryptocurrencies | Opinion (https://coinmarketcap.com/community/articles/6895eda39a14c16682dc53b4/)