According to a recent announcement, Blockchange and IRA Financial will work together to enable IRA funds and select 401 (k) plans to be invested in digital assets. The partnership will ensure that such investments take place under the management of a financial advisor. Under the partnership, investors will enjoy the tax advantages of an Individual Retirement Account while being able to diversify in crypto assets.
Previously, IRA Financial collaborated with Gemini Exchange to give investors the ability to invest in crypto on an individual basis. Financial advisors have been able to give their clients exposure to crypto in IRAs, but this is done via digital trusts and without the benefits of owning the underlying assets.
With the new partnership, the expertise of a financial advisor can be leveraged to manage the comprehensive crypto portfolio for the investor. At the same time, they will get to maintain the tax advantage of a qualified IRA while owning the underlying assets.
How The Partnership Works
To get started, investors set up a self-directed IRA with IRA Financial. They then transfer funds from their existing IRA, 401 (k) plans or former employer 401 (k) plans into the new IRA. With that, IRA Financial will inherit custody of the funds, which are moved to the Gemini Trust Company. At the trust, they are invested into a portfolio of crypto assets. The investor’s financial advisor will then manage the assets with the Blockchange BITRIA Digital Turnkey Asset Management Platform. It is worth noting that before the partnership; Blockchange was already serving RIAs and wealth managers with professional-grade portfolio management tools.
One of the advantages of the partnership is that investors are not limited to Bitcoin exposure only. The solution comes with support for BTC, ETH, LTC, and 18 other digital assets. With a wide range of supported assets, investors will seamlessly have the ability to diversify in their retirement portfolios based on their time horizon and risk appetite. Within 401Ks, one of the only ways investors get exposure to Bitcoin is through the Grayscale Bitcoin Trust. Despite it being a great product, investors have to remember it is strictly Bitcoin-based. Also, investors are paying a hefty premium to purchase the fund in their retirement account.
With traditional Wall Street firms still offering little support for digital assets, this partnership will help investors deploy capital into an asset class that has historically outperformed the stock market. Additionally, financial advisors will be in a better position to manage these assets thanks to the infrastructure Blockchange will be incorporating.
Leadership Thoughts On The Partnership
Commenting on the partnership, the President of Arbor Capital Management, Mathew Kolesky, noted that many investors were realizing the benefits of crypto and they wanted to participate with IRAs. He added that until now, firms had not had an efficient way to offer exposure for retirement accounts. Kolesky added,
“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.”
The IRA Financial CEO, Adam Bergman, also commented on the partnership and 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 through Gemini.”
Finally, the Blockchange CEO, Dan Eyre, made his comments on the partnership. He noted that investing in a more complex range of crypto assets beyond Bitcoin required the expertise of an advisor who understood digital assets. Eyre added,
“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. RIAs new to digital assets can also benefit from firms with more experience in cryptocurrencies through the SMA structure enabled by our BITRIA platform.”
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice.