Leading asset management firm FS Investments announced on March 18th that it had entered into a partnership with the New York Digital Investment Group (NYDIG). The primary aim of the partnership is to enable investors and financial advisors to access Bitcoin in a secure yet cost-efficient manner. The news comes just days after Morgan Stanley included both the companies as part of its wealth management service.
The terms of the Partnership
As indicated by the information shared by both companies, FS Investments is looking to leverage the end-to-end institutional grade platform that NYDIG has to offer, which is capable of Bitcoin custody, asset management, financing, execution, and research. FS Investments will provide its marketed and education services, which will allow the two entities to design products in compliance with all governance, audit, and regulatory directives.
Even though Bitcoin’s institutional adoption is at an all-time high, it is still far from ideal when it comes to investors and advisors. In fact, advisors are left with very few options for adding Bitcoin to their client portfolios. Individual investors wanting to invest in Bitcoin are faced with challenges of their own, including security risks, high fees, and a cumbersome process. According to NYDIG co-founder and CEO, the partnership is aimed at removing the above barriers.
The Present Scenario
NYDIG is not the only firm that has been taking advantage of the crypto-boom lately, as it joins a string of others that have made attempts to create a Bitcoin exchange-traded fund. However, Bitcoin ETFs are still waiting for the regulatory green light from the United States Securities and Exchange Commission. However, experts and analysts have put forward 2021 as the year we may finally see a Bitcoin ETF getting approved in the United States.
Currently, the regulatory environment in the United States is grey, which has given rise to increasing demand for platforms that will be compliant with existing regulations. FS Investments aims to remedy this by partnering with institutional-grade fund managers such as NYDIG.
About FS Investments and NYDIG
The New York Digital Investment Group (NYDIG) is the $10 billion subsidiaries of Stone Ridge, established as an alternative asset manager. Their platform, which capable of secure custody. Asset management and research, among other things, have a Limited Purpose Trust Charter as well as a New York State BitLicense. Earlier this month, NYDIG announced that it had attracted a $200 million investment from the likes of Morgan Stanley, New York Life, Mass Mutual, Soros Fund management, and others.
Headquartered in Philadelphia, PA, and with offices in New York, Orlando, Fl and Washington, DC, FS Investments is a leading alternative asset manager. It has more than $20 billion in assets under management and is dedicated to designing solutions that combine investment structures, strategies and top institutional managers for their investor’s needs.
This latest partnership between the two companies is expected to further push the agenda of adaptation of Bitcoin amongst mainstream investors.