How to integrate cryptocurrencies into wealth management? A guide for financial advisors.

The rise of digital assets is shaking up traditional wealth management models. Today, cryptocurrencies are no longer a mere marginal phenomenon: they are becoming an essential asset class. Bitcoin, Ethereum, stablecoins... These are just a few of the elements shaping your clients' digital wealth.

As a financial advisor, it is crucial to understand how to integrate cryptocurrencies into wealth management strategies. This article will guide you step by step in understanding this revolution, while anticipating market developments.

Coinstancy is working on the development of Coinstancy Pro, a solution specifically dedicated to crypto financial advisors and wealth managers. Its launch is planned for 2026.

Why integrate cryptocurrencies into wealth management?

An essential asset class
Cryptocurrencies offer a unique potential for portfolio diversification. Not correlated to traditional markets during certain periods, they can play a strategic role, especially in times of economic instability.
Growing client demand
Investors, especially millennials and Generation Z, show a marked interest in crypto wealth management. According to several recent studies, more than 50% of young investors hold or are considering acquiring cryptocurrencies.
Preparing for the transmission of digital wealth
Digital wealth is increasingly taking up space in successions. Anticipating its structuring and transmission has become a major issue in overall wealth management.

Understanding the fundamentals of crypto to advise well

Cryptocurrencies: Quick definition
Cryptocurrencies are digital assets based on blockchain technology.
Examples:
- Bitcoin (BTC): Digital store of value.
- Ethereum (ETH): Decentralized application platform.
- Stablecoins (USDC, USDT): Cryptocurrencies backed by stable assets.
Modes of ownership
- Direct ownership: Through digital wallets.
- Indirect ownership: Through funds, ETFs, or structured products.
- Staking: A mechanism for generating returns.
Specific risks
- Extreme volatility.
- Technological risk (loss of private keys).
- Rapidly evolving regulatory framework.

Assessing a client's crypto profile

Adapting crypto integration strategies to the client's wealth situation and risk appetite is essential.

The right questions to ask:

What portion of the client's total wealth is they willing to allocate to digital assets?
What is their investment horizon?
What is their level of tolerance for volatility?

Two typical approaches:

Conservative approach: 1-5% of the portfolio in digital assets, focusing on major cryptocurrencies and stablecoins.
Dynamic approach: 5-15% of the portfolio, integrating emerging projects and yield strategies (staking, farming).

How to integrate cryptocurrencies into a wealth management strategy

Practical strategies for crypto integration
- Marginal diversification: Controlled allocation to limit exposure to risk.
- Defensive strategies: Use of USD-backed stablecoins to secure portfolios.
- Derivatives and funds: Indirect exposure with better regulatory oversight.
- Secure staking: To generate passive income.

Example of a diversified portfolio:

Asset Class | Weight

Note: The percentage allocated to cryptocurrencies varies according to the client's risk profile.

Tax issues related to cryptocurrencies

Crypto taxation in France Since 2019, cryptocurrency capital gains tax has been regulated:
- Flat tax rate of 30% for individuals.
- Obligation to declare accounts opened on foreign platforms.
Key points to watch:
- Declaration requirement: Foreign crypto asset accounts (Cerfa 3916 bis).
- Capital gains: Must be declared even if funds remain in a crypto wallet.
- Donations/Transmission: Cryptocurrencies must be valued and integrated into the inheritance estate.
Optimization strategies:
- Donations before capital gains.
- Long-term holding to smooth volatility effects.
- Structuring through companies or holding entities.

Advice: Specialized legal and tax support is essential to secure the integration of cryptocurrencies into wealth strategies.

Challenges for advisors and Coinstancy’s response

Major challenges:
- Lack of tools to monitor, audit, and integrate crypto wealth management into traditional allocations.
- Regulatory challenges and increased compliance needs.
- Lack of specialized training for wealth management teams.
Coinstancy's commitment Coinstancy is currently developing Coinstancy Pro, a platform that will allow:
- Real-time tracking of your clients’ digital assets.
- Generation of wealth reports incorporating crypto assets.
- Ensuring regulatory and tax compliance.

Coinstancy Pro is set to launch in 2026, to help crypto financial advisors and wealth managers in the digitalization of their clients' wealth.

Conclusion

The world of wealth management is undergoing a transformation.
Cryptocurrencies and digital wealth must now be integrated into strategic thinking to meet the needs of an increasingly aware client base.

Anticipating this evolution, training in crypto strategies, and understanding crypto taxation issues are becoming imperatives for staying a trusted advisor and effectively assisting clients.

Coinstancy is by your side and is already preparing tailored solutions to help you navigate this transition.

Stay connected with Coinstancy Pro !