Crypto asset investment firm Blockchange and financial technology company IRA Financial have partnered to help individual retirement account and 401(k) plan owners to invest in crypto assets.
According to a Dec. 8 announcement, the offering that Blockchange and IRA Financial jointly launched “allows investors to leverage the tax-advantaged status of their IRA or 401(k) funds as they diversify into a range of cryptocurrencies.” IRA Financial CEO Adam Bergman said:
“We are excited to partner with Blockchange and offer financial advisors the ability to help their clients use an IRA or solo 401(k) to invest in cryptocurrencies seamlessly, securely, and cost effectively.”
The FinTech uses Blockchange’s digital asset investment platform.
Another step towards mainstream
Crypto assets are increasingly becoming a part of the mainstream investor’s portfolio, which indicates a growing appetite for such a product. As Modern Consensus reported at the end of October, more than half of U.S. investors are interested in buying Bitcoin, and nearly one quarter already have.
IRA Financial customers were already able to invest in cryptocurrencies on an individual basis, but now the crypto portfolio can be managed for the investor by a financial advisor, while maintaining the tax advantages of a qualified IRA and owning the underlying assets. Mathew Kolesky, the president of Arbor Capital Management, an IRA firm that leverages the new solution, explained:
“Many investors are realizing the diversification benefits cryptocurrencies offer and want to participate with their IRAs, but until now firms haven’t had an efficient way to offer exposure for retirement accounts. […] The new partnership is a game changer that enables firms to expand their portfolio offering as they bring the benefits of crypto assets to their clients’ IRAs and 401(k) plans.”
To use the new service, investors have to set up a self-directed IRA with IRA Financial and then transfer the funds from an existing IRA, solo 401(k) plan, or former employer 401(k) plan into the new retirement account. The funds are then custodied by United States crypto exchange Gemini for investment into a portfolio of crypto assets that is managed by the investor’s financial advisor.
The solution supports Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and 18 other crypto assets. Blockchange CEO Dan Eyre notes that investing in altcoins requires significant experience and capabilities:
“Investing in a more sophisticated range of crypto assets, beyond Bitcoin and perhaps Ethereum, really requires the expertise of an advisor with an understanding of the digital asset ecosystem. […] Working with IRA Financial, we’re able to help advisors bring this expertise to a whole new asset pool in the form of retirement accounts.”
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