BREAKING: US Financial Advisors Can Now Offer Crypto to Clients
One of the world’s largest global brokerage firms, Interactive Brokers Group, announced today that they are now allowing Registered Investment Advisors (Financial Advisors) to offer crypto to their clients and their portfolios. This means that billions of dollars of capital that couldn’t gain exposure to crypto before will now have access, which could open the floodgates to mass adoption.
BREAKING: Interactive Brokers just announced they will empower Registered Investment Advisors across the United States to invest in bitcoin and cryptocurrencies.
This means hundreds of billions of dollars can now enter the market more easily.
— Pomp ?? (@APompliano) October 18, 2021
The cryptocurrencies that Financial Advisors worldwide will now have access to are Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The Paxos Trust Company will be the custodian for the potential clients. Per the announcement, the launch of crypto trading for registered financial advisors will enable them to trade and custody the assets on behalf of clients.
“RIAs (Registered investment advisors) will benefit from the ability to manage their client’s positions in cryptocurrency in addition to stocks, options, futures, bonds, mutual funds, and ETFs from all over the world from a single screen, and all shown on one platform with customizable reports.”
Interactive Brokers is a massive entity, Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars as of February and they operate “around the clock in over 135 markets in numerous countries and currencies”. They provide a service for individual investors, hedge funds, trading groups, and financial advisors. If you can’t tell already, unlocking these major capital markets is huge for the crypto space and Bitcoin/Ethereum specifically, since they will get the lion’s share of the capital.
Allowing Financial Advisors to access, trade, and custody crypto for their clients puts crypto on par with other assets classes like stocks and commodities, in terms of legitimacy. No longer is crypto a rogue asset class, it is concrete and legitimate. Steve Sanders, EVP of Interactive Brokers said that adding crypto to a portfolio is “commonplace” now and said advisors have been wishing to recommend crypto to their clients.
Sanders finished by saying: “Adding cryptocurrency trading underscores our ongoing dedication to providing advisors with the investment products and tools they need to successfully manage client portfolios and grow their businesses.” Notably, crypto trading through Interactive Brokers is available to US-based Investment Advisors. Keep in mind that Registered Investment Advisors must be cleared and certified through the SEC. This means the SEC allowing this is basically a tacit endorsement of crypto.
According to data from this Summer, Registered Investment Advisors manage $110 trillion dollars in assets for nearly 61 million clients. Once again, this could be the tsunami wave that sends Bitcoin into the stratosphere, from which it may never return. Responding to this story, the head of growth at Kraken exchange Dan Held said on Twitter aptly: This is huge.
The post BREAKING: US Financial Advisors Can Now Offer Crypto to Clients appeared first on CryptosRus.
Text source: CryptosRus
