From the HC Investment and Advisory Committees:

With cryptocurrencies (“crypto”) gaining increasing media attention, questions about potential investment opportunities have been coming up more frequently. Focus Financial Partners (NASDAQ: FOCS) provided valuable resources and investment guidance for our clients.[1]

Currently, we are not able to purchase crypto in HoyleCohen managed accounts. In our view, it is a highly speculative investment. That’s not to say there couldn’t be substantial upside potential, but we wouldn’t suggest investing more than 1 – 2% of your investable assets.[2] If our clients choose to make a direct investment into crypto, it will be client-managed and our advisors will only provide guidance and education for clients on how to open their own app-based wallet.

Here are some resources that may be helpful.

Coinbase (https://www.coinbase.com). This is an app-based crypto wallet for clients interested in opening their own account and directly holding Bitcoin and/or other crypto. Clients can set up their own accounts and fund them through a bank deposit.

Fidelity Digital Asset (https://www.fidelitydigitalassets.com/overview). Of all the custodians, Fidelity is the one that has invested heavily in the crypto space. The fees are high however and the minimum investment may be prohibitive. The individual client minimum is $100,000.

Research Providers. There are a set of research providers and thought leaders in the space listed here. Each of these host regular research calls and publish extensively on crypto topics.

• Bitwise: https://www.bitwiseinvestments.com/resources/research-briefs
• CoinDesk: https://www.coindesk.com/
• Pantera: http://info.panteracapital.com/conference-calls

[1] Focus Financial Partners is an investor in independent, fiduciary wealth management firms and is the parent company of HoyleCohen.

[2] Investible assets include liquid and near-liquid assets that include cash, checking, savings, money market accounts, stocks, bonds, mutual funds, retirement, and trust accounts.

DISCLOSURE: This document is intended for information purposes only, and nothing discussed today should be interpreted as investment advice. Please be aware that all investments carry the risk of loss, including the permanent loss of principal, and that past performance is not a guarantee of future results.