Registered Investment Advisers (RIAs) with approximately $ 110 trillion under management can now offer cryptocurrency trading to their clients through Interactive Brokers. RIAs manage portfolios of nearly 61 million clients.
Registered Investment Advisors Can Now Offer Cryptocurrencies To Clients
Global investment firm Interactive Brokers Group (Nasdaq: IBKR) announced on Monday the launch of cryptocurrency trading for registered investment advisers (RIAs) in the United States
This offer will allow RIAs to “trade and hold bitcoins (BTC), ethereum (ETH), litecoin (SLD) and bitcoin cash (BCH) via Paxos Trust Company on behalf of clients. They will be able to manage their clients’ crypto holdings alongside traditional investments, including stocks, options, futures, bonds, mutual funds, and exchange-traded funds (ETFs).
Nearly 14,000 investment advisers registered with the U.S. Securities and Exchange Commission (SEC) reported nearly 61 million clients in 2020, according to a joint study by the Investment Adviser Association and National Regulatory Services. Both of these numbers are new heights for the industry. In addition, the industry manages approximately $ 110 trillion in total assets.
The Interactive Brokers platform has approximately 1.33 million client accounts and $ 330.6 billion in client equity in the first quarter. Clients from more than 200 countries and territories invest worldwide in stocks, options, futures, currencies, bonds and funds from a single integrated account.
Steve Sanders, Executive Vice President of Marketing and Product Development at Interactive Brokers, said:
Allocating a small percentage of assets to cryptocurrency as part of a well-diversified portfolio has become increasingly common, and advisers may wish to recommend cryptocurrency to their clients.
Cryptocurrency trading with Paxos on Interactive Brokers’ RIA platform carries commissions of between 0.12% and 0.18% of the value of the exchange, depending on the monthly volume, the company detailed. In addition, the notice adds that there are no spreads, markups or additional custody fees.
The company noted that although the offering was initially only available to RIAs in the United States, it planned to “launch the service for financial advisers in other parts of the world in the future.”
What do you think of the fact that RIAs can offer crypto trading to clients through Interactive Brokers? Let us know in the comments section below.
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