Wall Street Crypto

iTrustCapital, one of the leading IRA trading platforms allowing users to buy crypto and gold in real time, recently shared why investors are leaving Wall Street and pursing Bitcoin and Gold. In an era where investors value diversification, traditional Wall Street firms fail to address these concerns, which has retail investors looking elsewhere. 

iTrustCapital Investment Platform

iTrustCapital powers an industry leading investment platform for alternative assets such as Bitcoin and Gold. Through retirement accounts, investors are able to buy and trade cryptocurrencies and physical gold in real time. Compared to traditional Wall Street firms, iTrustCapital cuts costs beneath the surface, and is able to provide a platform that helps investors diversify in alternative markets. The firm states that their fees associated with IRA’s is 90% lower than their traditional peers.

Investors Leaving Wall Street – Flocking To Bitcoin & Gold

In a recent press release by iTrustCapital, the firm stated that investors are seeking market alternatives that are not supported by Wall Street firms.

According to iTrustCapital Director of Client Experience, Anthony Bertolino:

“Clients are increasingly frustrated with Wall Street and traditional financial institutions. They feel existing investment services do not have their best interests in mind. When they ask traditional firms about investing in Bitcoin and physical gold through their retirement accounts, their requests usually fall on deaf ears with these firms typically offering only mutual funds and bonds.”

Investor Migration

According to iTrustCapital, the company has completed more than 10,000 transactions in 2020. In terms of investor acquisition, the company explains that many new clients are consolidating their 401K and IRA accounts from traditional advisory firms. In return, investors are gaining exposure to alternative assets through self-directed retirement accounts at iTrustCapital.

According to Blake Skadron, the COO at iTrustCapital: 

“iTrustCapital is disrupting the self-directed IRA industry by utilizing the power of blockchain technology to offer the lowest cost, most transparent and liquid platform available for alternative assets in IRAs.”

Investor Frustration

As iTrust Capital mentioned above, investor frustration continues to mount as investors seek diversification during global uncertainties. If an average retail investor calls their broker today, there is no support for cryptocurrencies in managed or self-directed accounts. Advisors at firms like JP Morgan, Merrill, E-Trade, TD Ameritrade, and others have little to no experience with digital assets.

Additionally, these brokerage platforms have no infrastructure in place to manage cryptocurrencies. It is also important to note that iTrust leverages institutional grade custody for their clients, which offers a $50 million insurance policy and SOC 2 Type II Security.

If a retail investor asks about digital currencies, they are usually told that these assets are “speculative” and they do not meet “fiduciary standards.” This is when investors start to second guess where their assets are parked.

What Investors Get Instead

The traditional firms mentioned above are stuck with offering their clients individual equities, individual bonds, and other products such as ETF’s and mutual funds. In todays world, the average investor believes that the more funds they own, the more diversified they are. The problem with this theory is that many funds have overlapping holdings. For example, if an investor was to check the holdings in their 5 different mutual funds, chances are Apple or Amazon is in multiple funds.

Instead of being truly diversified, now this investor is paying management fees on two different funds for little to no reason. Unlike mutual funds that compensate advisory firms to push their funds, there is no central party behind Bitcoin that can create these revenue streams for Wall Street.

Cryptocurrency Diversification

Popular brokerages and advisory outlets continue to offer only traditional investments for various reasons. With this being said, investors are blocked from the digital asset space, which has historically been a great hedge to traditional markets. Companies like iTrustCapital are opening up the floodgates, and creating avenues for cryptocurrency adoption.

The IRS compliant investment platform is giving investors the opportunity to cut costs, and diversify in alternative markets. With institutional adoption on the rise in 2020, retail investors are seeing interest levels rising and want to position accordingly. iTrustCapital is paving the way for digital asset adoption, creating an experience that is completely irrelevant on Wall Street.

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