New York Digital Investment Group [NYDIG] and FS Investments, the latter an alternative investment manager, are both in the news today after they announced a partnership to allow financial advisors and investors access to Bitcoin.
According to the announcement,
“Under the partnership, FS Investments and NYDIG are bringing products to market that offer access to bitcoin, backed by NYDIG’s secure, regulated and insured custody solutions and FS Investments’ marketing and education capabilities.”
While FS Investments will provide market and education services, NYDIG will offer its complete end-to-end institutional-grade platform for Bitcoin custody, execution, asset management, financing, and research. The partnership will allow the two to design products to meet all regulatory, audit, and governance requirements.
The co-founder and CEO of NYDIG, Robert Gutmann, celebrated the said announcement and commented,
“While institutional adoption of Bitcoin continues to expand, advisors today have very few options for adding bitcoin exposure to their clients’ portfolios. For individual investors, investing in bitcoin can be cumbersome, fee-heavy, and prone to security risks. We are proud to partner with FS Investments to remove these barriers.”
With the regulatory environment in the United States still being very grey, there has been a need for investors entering the market to choose a platform compliant with existing regulations. FS Investments claims to make use of its reach within the industry to partner with institutional-quality investment managers.
As for NYDIG, like many other firms, it has also been taking advantage of the crypto-boom and recently, moved to create a Bitcoin exchange-traded fund [ETF]. The United States Securities and Exchange Commission [SEC] has not yet provided a green light to any Bitcoin ETFs, however, and the market expects 2021 to be the year when we may see a BTC ETF get approved.
In fact, in a recent podcast, Gutmann also claimed that some “pretty game-changing milestones” for the Bitcoin market and institutions participating in it will be soon underway.