Interactive Brokers is giving U.S. advisors management capabilities for four cryptocurrencies, according to an announcement. The offering, intended for RIAs, includes trading and custody of Bitcoin, Ethereum, Litecoin and Bitcoin Cash. The digital assets will be custodied with Paxos Trust Company.
The addition of crypto capabilities for the more than 5,700 RIA clients at Interactive Brokers is another sign pointing to increasing demand for technology to service digital assets among advisors. In addition to trading and custodial advances for RIAs, Interactive Brokers is offering client relationship and portfolio management, as well as access to the firm’s portfolio analysis tool that peers into clients’ held away assets. Billing, compliance and website-building services are also included.
Cryptocurrency allocations have “steadily become more commonplace,” said Steve Sanders, executive vice president of marketing and product development at Interactive Brokers. The first four digital currencies were selected because they were “well-known cryptocurrencies,” he explained. Interactive Brokers adds products and services and evaluates the demand for them afterward, so it’s possible additional cryptocurrencies will be added in the future.
For now, the firm is charging a minimum of $1.75 per order for each crypto transaction. The commission varies thereafter, depending on volume, and ranges from 12 to 18 basis points of trade value, according to the announcement.
Amid the fervor of debuts for crypto futures ETFs, Interactive Brokers joins a growing list of advisor tech vendors providing crypto transparency or trading capabilities.
MassMutual’s Flourish launched its Flourish Crypto management and trading platform in September. It currently only supports Bitcoin, with plans to add Ethereum “in the next few months,” according to Ben Cruikshank, head of Flourish.
Crypto investment firm Eaglebrook Advisors runs separately managed accounts for client-held crypto. It supports trading for Bitcoin, Ethereum and 16 other digital currencies that it doesn’t disclose, citing their proprietary mix.
Direct-to-consumer robo advisor Wealthfront began offering clients access to Grayscale Investments’ Bitcoin and Ethereum Trusts, which clients can add to their portfolio mix. Grayscale is also a partner for alternatives platform iCapital Network and provides access to Bitcoin, Ethereum, Cardano, Bitcoin Cash, Chainlink and Litecoin as part of its Digital Large Cap Fund.
Onramp Invest has been adding RIAs to its crypto transparency and education platform, with trading capabilities available through partnerships with Gemini and Prime Trust. Onramp has built an integration with Riskalyze to provide risk evaluation of digital assets for advisors using both services.