LPL advisors can now invest in blockchain technology for their clients in the form of a model portfolio.
The Boston-based broker-dealer announced on Thursday that it will offer the LPL Financial Research Blockchain Innovators Portfolio on its Manager Select platform for separately managed accounts.
The portfolio allows advisors to invest in the same technology that forms the basis of cryptocurrencies such as bitcoin.
“We believe this new strategy can further help our advisors differentiate their practices in the marketplace,” said Burt White, LPL managing director and chief investment officer, in a released comment. “At this time, there are very limited investment solutions available for exposure to this opportunity. We are proud to be able to lead the industry by leveraging our scale and expertise to provide low-cost solutions that support our advisors’ ability to meet market demands.”
Rather than investing directly in blockchain tokens or cryptocurrencies, the portfolio focuses on companies developing and implementing blockchain technology to drive efficiencies within their business models, which might improve earnings and stock performance.
“Blockchain Ecosystem, An Investment Opportunity,” a whitepaper released last month by LPL Research, said the proliferation of blockchain will have implications for health care, where it could ease the portability and security of patient records; financial markets, where blockchain can help verify and secure transactions like payments and security purchases; energy, where the technology can form the underlying infrastructure for carbon credits; industrials, where blockchain can streamline supply chains; and potentially alter every sector and business model.
The caveat? LPL Research says that at these early stages, it may take years for the full potential of blockchain technology to manifest itself.
The blockchain portfolio is the fourth LPL Research model portfolio on the Manager Select platform, which was launched in April and carries hundreds of strategies for separately managed accounts, mostly from third-party providers like Nuveen, Morningstar or Alliance Bernstein.
LPL has said it does not plan on charging a management fee for its advisors to access the new portfolio.