ErisX’s Trudeau: IRA Investors Want Crypto Exposure

In March, ErisX announced that Midland Trust clients would be able to invest in digital assets through their self-directed Individual Retirement Accounts (IRAs), including bitcoin and ether.

article-image

Matt Trudeau, ErisX at Blockworks Digital Asset Summit 2021; Photo by Mike Lawrence

share

key takeaways

  • ErisX is leaning into the IRA provider space by offering a way for self-directed clients to get exposure
  • The regulatory guidelines are already fairly straight forward, but Trudeau looks forward to having more clarity around the space

Earlier this month at Blockworks’ Digital Asset Summit in New York City, Matt Trudeau, chief operating officer of ErisX sat down to discuss the exchange’s move into retirement account products and what to expect on the regulatory front. 

In March, ErisX announced that Midland Trust clients would be able to invest in digital assets through their self-directed Individual Retirement Accounts (IRAs), including bitcoin and ether. 

“The IRA market in the US is massive and there is a whole market of self-directed IRAs,” Trudeau said. “There is the typical 401(k) that you get through your employer, but anyone who has changed employers, they typically roll this into an IRA.” 

As people have started to change careers more frequently, IRA investments have grown. ErisX started receiving inquiries from IRA providers that wanted to give clients exposure to cryptocurrencies, Trudeau said. 

“They were seeing increasing demand from their customers to add crypto assets into their IRA portfolio, and they were struggling to find a path that enabled them to do that in a way that they felt comfortable with that had the right level of security and regulatory compliance,” he said. 

ErisX saw the potential and built out the technology to work within the IRA space and has since expanded to partner with several different IRA providers, including IRA Financial and The Entrust Group. 

“The IRA investors tend to be more sophisticated,” Trudeau said. “These are typically people that have assets and they are looking at the long run, these are retirement accounts, they are looking 10, 20, 30 years out… their trade sizes tend to be larger.” 

These investors are excited about expanding their portfolios into a new asset class, Trudeau said. 

From a regulatory standpoint, Trudeau said that ErisX is already well versed in keeping within required guidelines, and he looks forward to watching the conversation evolve to bring more clarity to the space. 

Watch the full interview below and all of the panel videos from DAS here


Are you a UK or EU reader that can’t get enough investor-focused content on digital assets? Join us in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket. Buy it now.


Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screenshot 2024-05-23 091855.png

Research

Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.

article-image

I believe that the innovation happening on Bitcoin right now is what will ultimately lead to a better Bitcoin for everyone

article-image

The payments firm is exploring PYUSD’s payments use cases

article-image

Planned funds would not stake their holdings, which some say will hurt the ETFs’ appeal for certain investors

article-image

Solana validators voted in favor of a proposal that would send 100% of priority fees to validators

article-image

In November, an iteration of the survey found that 34% of respondents were paying attention to crypto, but that figure has since jumped to 41%

article-image

The sentencing of former FTX exec Ryan Salame is the first among those who pleaded guilty to crimes related to the exchange’s collapse