Investing in crypto requires caution due to its volatility. Edward Jones CEO Penny Pennington told Yahoo Finance’s Opening Bid podcast that she does not see crypto as an asset class because it lacks fundamental value. However, she acknowledges blockchain technology as a real innovation that will impact the industry.

Edward Jones is exploring crypto but currently does not offer related products, prioritizing what makes sense for its wealth-building clients. The recent crypto market downturn raises questions about Bitcoin’s role as a diversification tool. Since its December high of $109,000, Bitcoin has dropped 24%, including a 13% decline in the past month.

Bitcoin ETFs have seen $750 million in outflows in just two days, with BlackRock reportedly selling 2,000 BTC. The selloff extends to other cryptocurrencies like Ethereum and Dogecoin, as well as crypto-sensitive stocks. Coinbase has fallen 21% this year, while Robinhood holds modest gains.

Despite market swings, Pennington notes that many clients want to understand crypto. She believes it will remain part of the financial system and drive future mainstream innovations.