Interactive Brokers is tackling a slice of the crypto pie.
The international broker has launched crypto trading for RIAs, allowing advisors to purchase and manage bitcoin, ethereum, litecoin and bitcoin cash holdings for clients.
Crypto trading through Interactive Brokers comes with commissions of 12 to 18 basis points with a minimum fee of $1.75 per order. “There are no markups, markups or additional custody fees,” the company said.
“Allocating a small percentage of assets to cryptocurrency as part of a well-diversified portfolio has become increasingly common, and advisors may wish to recommend cryptocurrency to their clients,” said said Steve Sanders, executive vice president of marketing and product development. “The addition of cryptocurrency trading underscores our continued commitment to providing advisors with the investment products and tools they need to successfully manage client portfolios and grow their businesses.”
Interactive Brokers said crypto trading will initially be limited to US advisers, but the company plans to roll out the service for advisers in other parts of the world.
Last month, Interactive Brokers launched crypto trading for its individual investor clients.
The company partners with Paxos Trust Company, which describes itself as a blockchain infrastructure platform, to tokenize, hold, exchange and settle crypto assets through its Paxos Crypto Brokerage. Paxos’ crypto trading capability is also used by companies like Credit Suisse and PayPal, with the latter backing Paxos.
Other brokers like Robinhood also provide cryptocurrency trading for individual investors. Industry leaders Charles Schwab and Fidelity offer access to bitcoin futures but have not rolled out crypto trading capabilities for advisors. Most advisors have limited themselves to buying digital assets through crypto funds like those offered by Grayscale Investments and Galaxy Fund Management.
Separately, a ProShares ETF linked to bitcoin futures is expected to begin trading on the New York Stock Exchange on Tuesday.