MassMutual Life Investors Services offers its clients a Bitcoin fund

In a long-term vote of confidence in cryptocurrencies, broker-dealer MassMutual Life Investors Services (MMLIS) announced that it has concluded a brokerage agreement for a Bitcoin fund with NYDIG.

“MassMutual continues to believe that cryptocurrencies are becoming more and more part of the financial landscape and is working on a number of initiatives to better serve its customers and financial professionals,” the company wrote in a statement.

Christophe Morin / Bloomberg

The fund is expected to be available to select MMLIS financial professionals and their qualified clients next week.

“MMLIS saw a growing demand from our financial experts and their customers for Bitcoin exposure,” said Daken Vanderburg, Head of Investments, in the statement. “This offering with NYDIG is another step in expanding our product portfolio to ensure that our financial professionals and clients have the tools they need to continue building broadly diversified portfolios.”

Ric Edelman, cryptocurrency advisor and board member of Edelman Financial Engines, says MassMutual’s bitcoin fund is the latest example of how bitcoin and digital assets are going mainstream.

“The fact that MassMutual did this puts additional pressure on the rest of the financial services industry to do the same,” he says. “In a relatively short time it will be commonplace.”

“Every company in the financial services industry, from brokers to mutual fund companies to banks and insurance companies, will make this asset class available to their customers. It’s great news not just for the financial services industry but for their advisors and especially for their clients who urgently need not only exposure to this asset class, but the guidance and support of the advisory community who can help them find the best Decisions based on their circumstances, ”says Edelman.

Onramp Invest CEO Tyrone Ross says a bitcoin fund is an easy and accessible way to get into bitcoin, but he wouldn’t personally recommend it.

“It’s almost like the fast food version of Bitcoin. I move up, you give it to me, I move away. I don’t have to cook it, I don’t have to check the temperature and all that other stuff. I don’t know if that’s the best way, ”he says. “I believe in holding the underlying asset and buying it directly. That doesn’t mean the fund isn’t a good structure for some people – MassMutual’s clients aren’t our clients – but I’m not a big fan of the fund structure with Bitcoin. I don’t think that you take something so beautiful and elegant and decentralized and put it in a product. “

Last year, MassMutual made a $ 5 million equity investment in NYDIG, a provider of institutional investment and technology solutions for bitcoin, and a $ 100 million investment in bitcoin for its general investment account in one of NYDIG brokered transaction, the company said.

At the time, Robert Gutmann, Co-Founder and CEO of NYDIG said that MsssMutual’s involvement “underscores NYDIG’s role as a leading provider of Bitcoin solutions for institutions, banks and private customers. It also accelerates our white label business, which provides a rapidly growing group of large financial institutions with bespoke implementations of our core custody, execution, financing and AML / KYC functions. “

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