Interactive Brokers operates the largest electronic trading platform in the US. This is why the fact that they launched a Bitcoin trading and custody option for registered investment advisors is huge. These Financial advisors have over 61 million clients with a total of $110 trillion under management. This opens Bitcoin to a lot of potential investment in the near future. Even if 1% of their AUM gets invested in BTC, it is almost as much as the current market cap of the currency.
Registered Investment Advisors (RIAs) offering crypto services
All crypto services offered by the RIAs will be through the option provided by the company, Interactive Brokers. As of now, they are offering 4 options in the crypto investment world. These are Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The benefit of this recent announcement is that the RIAs will be able to manage their client’s crypto portfolios just like their traditional investment. This will make investing in crypto no more difficult than going for stocks, gold, or some other thing.
We have already talked about the size of the market that makes this a very big deal. And we should have a close eye on the demand for crypto through these registered investment advisors. It could drive high adoption rates and the price of various cryptocurrencies could increase parabolically in the upcoming months.
A great thing for Interactive Brokers
This is also a great thing for the brokerage firm Interactive Brokers. This is because they have 1.33 million customers right now, with a combined AUM of $330.6 billion. It means they also have a lot of growth opportunities here as there are over 61 million RIA clients. Their fee is also not very high, with the lowest being 0.12% and the highest being 0.18%. All this combined makes this not only a great thing for crypto but also for the firm.
It is also important to note that the crypto investment option through the firm is only available for RIAs in the US. But they also plan to launch these options in other parts of the world as time goes on.
What are your thoughts on RIAs accessing crypto trading services for their clients via Interactive Brokers? And do you think this will drive adoption among the 61 million clients? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.