The crypto ecosystem is taking another leap forward with a new solution for wealth and money managers, designed to open Bitcoin and cryptocurrency markets to big players on Wall Street.
San Francisco-based SFOX, a crypto prime dealer used by over 175,000 traders and investors, today announces an industry-first service that allows money managers to easily administer crypto trading strategies for each client via a single login – a solution that positions cryptocurrency as an increasingly integral part of the financial system.
The user interface is designed to expand the cryptosphere by onboarding big money into a seamless environment that bridges the gap between the investment management industry and digital assets such as Bitcoin, Ethereum and XRP.
The separately managed account (SMA) solution targets the investment vehicle of choice among many high-net-worth individuals. According to SFOX, it’s the first such solution for the crypto prime dealer/broker model, giving Wall Street financial advisors, money managers and investment funds critical infrastructure for gaining access to cryptocurrency markets without needing to worry about custody, security, reporting requirements and fund administration, which are traditional pain points for investors who want to buy Bitcoin and altcoins.
As Bitcoin and crypto advocates imagine a world where digital assets either function alongside traditional fiat currencies or replace them entirely, developers in the space continue to build the necessary infrastructure to support a new global financial system based on digital assets that can move rapidly, securely and at a scale in order to rival legacy players and platforms.
SFOX says its new trading product is a pivotal onramp that allows crypto professionals to scale their businesses by reducing operational costs.
Nabeel Qadri, managing partner at crypto fund-of-funds Protocol Ventures, calls it a game-changer for prime brokerage in crypto. Investors can access detailed information on every single trade an agent makes on their behalf, and fund managers have the option, for example, to curate individualized tax-based strategies for their clients, taking into consideration a designated tax bracket and other criteria.
“We can deploy a suite of strategies at scale and size our risk efficiently while minimizing slippage and reducing the impact our orders have on the underlying price of the asset. Transfers in and out are seamless.”
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