More than half of UK-based wealth advisors say most of their clients’ digital assets sit outside their control, highlighting a widening gap between client activity and advisory oversight, according to a CoinShares survey of 261 European professionals.
UK shows largest management gap
The study found that 52% of advisors in the United Kingdom report a management gap exceeding 50%, meaning the majority of client crypto holdings are managed independently. Across France, Germany, Italy, and Switzerland, only about one in four advisors reported gaps of that scale.
CoinShares defines the gap as crypto exposure held beyond advisory oversight, such as assets stored on personal exchanges or in self-custody wallets. The findings point to internal firm policies — rather than advisor knowledge or client demand — as the main factor shaping this disconnect.
Internal policies limit engagement
Around 61% of respondents work at firms that either restrict digital asset activity or lack clear guidance. In these environments, just 1% of advisors recommend crypto-related products. That compares with 48% at firms where such activity is supported.
The difference significantly affects how much client exposure remains unmanaged. The gap averages 34% in restricted firms but drops to just 4% where policies allow digital asset engagement.
More than 75% of advisors who say they are underinformed about digital assets are employed at firms with restrictive policies, reinforcing the view that institutional barriers — not individual readiness — are limiting participation.
Rising client activity outside advisory channels
The survey also signals growing independent activity among clients. Across Europe, 8% of respondents reported rising client interest paired with a large management gap. In the UK, this figure climbs to 14%, indicating a stronger trend toward self-directed crypto holdings.
Italy stands out as an exception. Its more direct advisor-client model and permissive retail distribution framework correspond with the smallest gap in Europe at 12%, suggesting faster conversion of client demand into managed exposure.
Regulatory recognition seen as key
When asked what would improve confidence in digital assets, 45% of respondents pointed to regulatory recognition of crypto as a legitimate asset class. Access to exchange-traded products followed at 43%, while client education ranked last at 9%.
Both leading factors depend primarily on external developments rather than internal initiatives.
Europe approaches MiCA deadline
The findings come as Europe prepares for a major regulatory shift. The Markets in Crypto-Assets (MiCA) framework will take effect on July 1, requiring crypto service providers operating in the European Union to hold a valid license.
The European Securities and Markets Authority has confirmed there will be no extension. As of May 2026, only about 210 firms had secured full authorization out of more than 1,200 previously registered under national regimes.
Platforms without approval must wind down operations or stop serving European users. Regulators have instructed non-compliant firms to arrange orderly closures, including transferring client assets to authorized providers or self-custody solutions.
This raises the risk of service disruptions for users on unlicensed platforms, making it critical to verify authorization status ahead of the deadline.
UK follows separate regulatory path
The United Kingdom is advancing on a different timeline. The Financial Conduct Authority is consulting on proposals that would allow authorized funds to allocate up to 10% of holdings to crypto exchange-traded products, with feedback open until July 13, 2026.
This follows earlier steps to expand access. Retail traders were allowed to invest in crypto exchange-traded notes in 2025, and these products became eligible for inclusion in Innovative Finance ISAs from April 2026.
A broader regulatory framework will be introduced in stages, with applications for authorization opening on September 30, 2026, and full rules scheduled to take effect on October 25, 2027.
Shift toward self-managed crypto exposure
The CoinShares report underscores that a large share of digital asset activity is taking place outside traditional advisory channels. Internal company policies continue to lag behind client behavior, leaving individuals to manage exposure in a fast-changing and complex market.
As regulation tightens across Europe and evolves in the UK, the gap between advisory structures and client activity may narrow, but for now, responsibility remains largely with the individual asset holder.
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