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Investing in crypto should still be handled with great care given its volatility.
"I don't see crypto as an asset class," Edward Jones CEO Penny Pennington told me on Yahoo Finance's Opening Bid podcast (video above; listen in below).
Pennington added, "There is not a fundamental value that stands behind crypto — however, it is becoming an innovation in our marketplace associated with blockchain innovations. That is a very real thing and will have a positive impact on our industry and on investors."
Edward Jones is continuing to look at ways to get involved in the surging crypto space, provided it makes sense for its wealth-building clients, Pennington said. But it currently doesn't offer crypto products and isn't rushing anything to market.
To Pennington's point, renewed crypto volatility may have some wondering about its status as a true asset — especially as a diversification tool inside a portfolio.
The price of bitcoin has tanked about 24% since hitting an all-time high above $109,000 in early December as investors digest rising fears of a recession and Trump tariffs.
Bitcoin has fallen by around 13% in the past month.
Bitcoin ETF outflows have rallied roughly $750 million in the past two days amid the pressure on prices, according to crypto publication Be in Crypto. BlackRock (BLK), the largest issuer of bitcoin ETFs, has reportedly sold around 2,000 bitcoins in the past 24 hours.
The sharp pullback has extended to other cryptocurrencies, such as dogecoin and ethereum. Crypto-sensitive stocks on Coinbase (COIN) and Robinhood (HOOD) have also shed a lot of value this month.
Coinbase is now down 21% on the year, while Robinhood is clinging to a modest gain.
"Now, many of our clients say, 'You know, I want to be a part of what's going on [in crypto]. I want to understand this better.' That doesn't mean that you need to invest in it. But understanding it better really is a very smart thing. It's going to be with us, it's going to be part of our financial system, I believe. And it will be the root of innovation associated with things that will become more mainstream over time," Pennington said.
Three times each week, I field insight-filled conversations and chats with the biggest names in business and markets on Opening Bid. You can find more episodes on our video hub or watch on your preferred streaming service.
Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.