Key Highlights
- 25% of European wealth managers say more than half of clients’ crypto holdings remain outside their oversight.
- The UK reported the largest visibility gap, with 52% of advisers unable to track most client digital asset exposure.
- CoinShares identified firm policy, rather than client demand or adviser knowledge, as the primary cause of the management gap.
European wealth managers are increasingly losing visibility into their clients’ cryptocurrency investments, with many digital asset holdings remaining outside the traditional advisory relationship, according to a survey released by CoinShares.
In a report published on Thursday, the digital asset investment firm surveyed 261 wealth management professionals across France, Germany, Italy, Switzerland, and the United Kingdom and found that a significant portion of client crypto exposure is being managed independently through exchanges and self-custody platforms rather than through regulated advisory channels.
CoinShares described this phenomenon as the “management gap,” the share of a client’s digital asset portfolio that remains invisible to the adviser responsible for managing their broader wealth.
Advisers struggle to track client crypto holdings
The survey found that 25% of European wealth managers estimate that more than half of their clients’ cryptocurrency holdings remain outside their oversight, with the issue most pronounced in the UK, where 52% reported visibility gaps exceeding 50%. CoinShares noted that these exposures already exist within client portfolios rather than reflecting future demand for digital assets.
The findings also showed that advisers who actively engage with digital assets tend to have greater visibility into client portfolios. Fewer than 10% of advisers who recommend crypto reported management gaps above 50%, compared with around 40% of advisers who said they lacked sufficient knowledge to advise on the asset class.
According to CoinShares, clients are more likely to integrate digital assets into professionally managed portfolios when advisers are willing to discuss them, while a lack of engagement often leads investors to manage crypto allocations independently.
Firm policies drive the problem
The report identifies firm policy, not client demand or adviser knowledge, as the primary factor behind the growing management gap. According to the survey, 61% of advisers work for firms that either explicitly restrict digital asset activity or provide no formal guidance on the asset class.
In firms with supportive digital asset policies, nearly half of advisers actively recommend crypto-related investments. In firms with restrictive policies, that figure drops to just 1%.
CoinShares also found that advisers working in supportive firms reported management gaps averaging just 4%, compared with 34% among advisers in firms that prohibit or discourage engagement. The company argued that many advisers remain underprepared because their firms have chosen not to provide training or establish internal frameworks around digital assets.
Industry wants regulation and investment products
When asked what would increase their confidence in recommending digital assets, advisers pointed to regulatory clarity and investment products rather than educational resources. 45% cited official regulatory recognition of digital assets as a mainstream asset class, while 43% highlighted access to exchange-traded products (ETPs).
By comparison, client-facing educational tools ranked among the least important factors. CoinShares said the findings suggest that advisers view institutional infrastructure and regulatory frameworks as the key requirements for broader adoption.
Regulatory developments could narrow the gap
The survey comes as Europe moves closer to a unified digital asset framework through the implementation of the Markets in Crypto-Assets (MiCA) regulation. CoinShares noted that regulators across Europe and the UK are increasingly evaluating pathways for broader integration of digital assets into traditional investment products.
The company highlighted ongoing discussions in France regarding crypto eligibility within UCITS funds, as well as proposals in the United Kingdom that could allow authorized funds to allocate up to 10% of assets to crypto ETPs.
CoinShares warns firms risk losing client relationships
CoinShares CEO and co-founder Jean-Marie Mognetti warned that many advisory firms are allowing client wealth to migrate beyond their visibility. “The capital has already been allocated. The people entrusted with managing it simply cannot see it, and in most cases, not because clients are unwilling to engage, but because firm policy prevents them from doing so,” Mognetti said.
He argued that the issue has evolved beyond digital asset adoption and now threatens the advisory relationship itself.
Digital assets become mainstream wealth management
The survey suggests that digital assets are becoming an established part of investor portfolios, regardless of whether wealth managers actively engage with the sector. CoinShares said firms that incorporate digital assets into their advisory offerings may be better positioned to retain visibility into client assets as regulatory frameworks mature and institutional investment products continue to expand.
The company also argued that proactive engagement could become increasingly important as the industry navigates one of the largest intergenerational wealth transfers in history.
Also read: OKX Founder Questions Binance’s Transparency Amid MiCA Scrutiny
