Just recently, a digital asset IRA (Individual Retirement Account) company called Bitcoin IRA, released the first ever self-directed cryptocurrency IRA. This achievement was created through a partnership with BitGo Trust.
Bitcoin IRA just recently launched the first-ever cryptocurrency IRA through a partnership with BitGo Trust. This retirement account features $100 million in insurance protection, 30 percent lower wallet fees and the ability to diversify customer holdings in 12 different digital assets.
Since it is a self-directed investment, customers are fully authorized owners who direct Bitcoin IRA on what to hold. The CEO of BitGo, Dick Corcoran, said that this IRA is no different from the traditional ones. The biggest difference is that the assets are crypto, not stocks or bonds.
Additionally, the company started offering retirement accounts in 2016, and since then they have built more than 5,000 hybrid crypto IRAs. The company has processed approximately $300 million in digital asset transactions.
BitGo will take on the protection of these assets by providing a cold storage. The storage will be maintained in a secure “bank-quality” offline vault in South Dakota. Also, it will have a clearly defined protocol on who can access these holdings. Mr. Corcoran stressed that the company exceeds the regulators’ demands on the amount of capitalization and insurance behind the assets.
“BitGo is a master engineer of risk and security, whether for largest institutional investor or someone beginning their retirement savings,” said Bitcoin IRA COO, Chris Kline.
A New Era of Investors
Chris Kline explains that their investors are very diverse. He says that they are very different from the traditional asset investors. He is proud of the general parity between male and female investors as well as the geographical spread.
Also, a thing worth mentioning, customers can instantaneously open up their accounts. The only thing that can take more than a day is the KYC procedure. Since they haven’t got an automated system yet, they are doing this manually. That’s for the account itself. Moreover, to fund the account can take plus 10 to 15 days, depending on the customer’s custodian.
Chris Kline shared his thoughts on this market saying that these new IRAs are moving at the speed of internet and, basically, “are a solution raised from the digital era for the digital era”.
This kind of alternative actually encourages new crypto enthusiasts to start thinking about their retirement plans. I myself started thinking about an IRA, just because now it can be composed entirely by crypto.
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