Blockchange, a U.S.-based digital asset investing platform for professional wealth managers, announced on Tuesday it has partnered with U.S. fintech IRA Financial to enable IRA funds and select 401k plans to be invested in cryptocurrencies and digital assets, under the management of a financial advisor. According to the duo, this new collaboration allows investors to use the tax-advantaged status of their IRA or 401(k) funds as they diversify into a range of cryptocurrencies.
“Investors have previously been able to work with IRA Financial to invest in cryptocurrencies on an individual basis. Financial advisors have been able to expose their client’s IRAs to crypto assets through digital trusts or funds that don’t offer the benefits of owning the underlying assets. The new partnership means that the expertise of a financial advisor can be leveraged to manage a comprehensive crypto portfolio for the investor, while maintaining the tax advantages of a qualified IRA and owning the underlying assets.”
Mathew Kolesky, President of Arbor Capital Management, one of the first RIA firms to adopt the Blockchange-IRA Financial solution, stated that the partnership is a game-changer that allows firms to expand their portfolio offering as they bring the benefits of crypto assets to their clients’ IRAs and 401(k) plans. Kolesky then added:
“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.”
Founded in 2017, the Blockchange Platform brings professional-grade portfolio management capabilities to digital investing, enabling wealth managers and advisors to easily manage their entire client base. The company recently announced the addition of fourteen new digital assets to its BITRIA Digital Turnkey Asset Management platform for registered investment advisors. According to Blockchange, the additions will include ten Decentralize Finance (DeFi) tokens and will allow wealth managers to offer a “broader” base of digital assets in response to growing investor interest.