There were few definitive judgments from the market following the US presidential election, but surely going long on crypto is one of them. The incoming administration is likely to see crypto investing take off like never before, which offers both risks and opportunities for traditional wealth managers.

The aggregate result of this election cycle, not least the US presidential contest, is bullish for the crypto industry in the US and by extension the world. The price of Bitcoin and other smaller tokens all jumped as a Trump win became apparent—mostly as investors priced in a more lenient regulatory environment and less hostile narrative in Washington. Besides the price increases, what should wealth managers anticipate as a result of the change in government?

The cryptocurrency industry is about to see a big expansion at all levels. This represents both a significant opportunity as well as a risk, not least because no one is really using crypto as a method of payment despite such assets ostensibly being currencies.

As such, all wealth managers need to get better at understanding and vetting the evolving world of cryptocurrencies as a source of new wealthy clients, as investments for their own clients, as well as a potential threat to client wealth. All are about to increase significantly.