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Best of 2021: The Crypto-Fiat Currency Gap is Closing

We thought it would be interesting to look back at which of our Blog Posts in 2021 were viewed the most. Perhaps not surprisingly, when we announced the news that BFI Infinity was on the verge of offering crypto allocations in their investment mandates, many of our blog readers reflected the enormous interest in the investment theme and continued to click on the post throughout the year. Here’s a look back at the post from March, “The Crypto-Fiat Currency Gap is Closing”.


(Since this post was first appeared on March 17, 2021, a lot has changed in the crypto and digital world at BFI. BFI Infinity has nearly a year of experience under their belts and now has many clients that have taken advantage of including crypto assets into their investment mandates. Furthermore, BFI Consulting is now offering a product, AltAlpha Digital, a fund of fund approach with a one-stop access to crypto assets, and our BFI Capital Group published the wildly popular Special Report in late 2021 titled The Emerging World of Digital Assets – Why and How to Participate. And, in the blockchain realm, aXedras continues to grow and, with its core Bullion Integrity Ledger®, is a leading contender to become the #1 DLT-based supply chain management tool for the global precious metals industry.


The Crypto-Fiat Currency Gap is Closing


By Daniel Zurbruegg, BFI Infinity Ltd.


BFI is just weeks away from offering investment mandates that will be able to include crypto allocations. A growing number of solid and reputable international banking institutions have largely closed the gap between fiat- and cryptocurrency-based investing. They have also moved beyond mere single-investor online applications to IT solutions that allow investment professionals and firms to manage crypto assets for their clients, in sync with their traditional investment portfolios.


Online banking, to some degree, has become an expected standard for private banks for a long time. It allows online trading for individual investors as well as professional investors and investment advisory firms. The tools for investment firms include such things as portfolio consolidation, batch orders for their clients, reconciliation, and reporting tools. This, however, until recently, was limited to traditional securities and fiat currencies only. In other words, the custody and trading of cryptocurrencies and crypto assets was not integrated into those tools.


Now, a growing number of banks have expanded into the crypto investment world, fully regulated under the respective banking rules of their jurisdiction. In addition, with their online banking offering, licensed investment advisory firms benefit from mass subscriptions and professional trading tools for their customer base and the execution of block orders when trading crypto securities.

The custody and transactional tools and infrastructures have evolved and reached a level that BFI is now confident in, and we will be able to start offering mandates to clients who are interested in integrating crypto allocations into their overall wealth management portfolio.


We were hesitant to offer this particular service for some time, as we wanted to first ensure that the tools and infrastructures offered by the respective banks regarding these assets were solid and reliable. And indeed, not being amongst the first movers was a good thing. In the early days, there were some noteworthy, albeit manageable, glitches. At this point, however, we feel comfortable entering the arena and I am quite excited about this very positive development.

 

The first step toward change is awareness. The second step is acceptance. ~ Nathaniel Branden

 

This is a very new asset class that requires specialized and focused attention. Therefore, as we can integrate the service, we will endeavor to cooperate with expert partners on such mandates. >> Contact the team at BFI Infinity for more details and information.


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