4 ms·

The set of people who can dump $250k in crypto assets is a tiny subset of accredited investors, one would think

by drdrey 8y ago

JumpCrisscross 8y ago
This product is almost certainly targeting RIAs.
- adjkant 8y ago
  Had to look up what an RIA is, so for others: https://riabiz.com/a/2011/10/4/what-exactly-is-an-ria https://riabiz.com/a/2011/10/4/what-exactly-is-an-ria
  - neals 8y ago
    Which, according to the link, is a "registered financial advisor"...
- patio11 8y ago
  That's an interesting thought. To expand on it: there exists an ecosystem of regulated RIAs, which are largely sales agents for investment opportunities who have some advisory and custodial functions. (Most would not describe themselves that way but...) You can find one in your local office park. They exist at a wide range of firm sizes, but suffice it to say that one value of typical might be "100 clients, $50 million total assets under management, 2 advisors + 3~6 support staff." The prototypical customer is a mid-career dentist or middle-class retiree. For that firm, some of their clients are accredited investors and some aren't, but the offering to them is, basically, "You've had people tell you in meetings for the last year I-want-to-be-in-on-Bitcoin. You've had to say no, because clearly you have no business doing Bitcoin custody and your lawyer/accountant would have a fit. We would happily let you buy ~$1 million of our basically-runs-itself Bitcoin product, which you'll move $15k here and $50k there to some of your client base. Your business model continues to be charging 1% of assets under management per year. Client need: satisfied. Impact to your firm: minimal. Future asset outflow to cryptocurrency: zero."
charlesdm 8y ago
There are 15 million HNWIs in the world (net worth >$1m, excluding main residence). There are also 180,000 UHNWIs in the world (net worth of at least $30m).

4 ms·

The set of people who can dump $250k in crypto assets is a tiny subset of accredited investors, one would think

by drdrey 8y ago

The set of people who can dump $250k in crypto assets is a tiny subset of accredited investors, one would think

JumpCrisscross 8y ago
This product is almost certainly targeting RIAs.
- adjkant 8y ago
  Had to look up what an RIA is, so for others: https://riabiz.com/a/2011/10/4/what-exactly-is-an-ria https://riabiz.com/a/2011/10/4/what-exactly-is-an-ria
  - neals 8y ago
    Which, according to the link, is a "registered financial advisor"...
- patio11 8y ago
  That's an interesting thought. To expand on it: there exists an ecosystem of regulated RIAs, which are largely sales agents for investment opportunities who have some advisory and custodial functions. (Most would not describe themselves that way but...) You can find one in your local office park. They exist at a wide range of firm sizes, but suffice it to say that one value of typical might be "100 clients, $50 million total assets under management, 2 advisors + 3~6 support staff." The prototypical customer is a mid-career dentist or middle-class retiree. For that firm, some of their clients are accredited investors and some aren't, but the offering to them is, basically, "You've had people tell you in meetings for the last year I-want-to-be-in-on-Bitcoin. You've had to say no, because clearly you have no business doing Bitcoin custody and your lawyer/accountant would have a fit. We would happily let you buy ~$1 million of our basically-runs-itself Bitcoin product, which you'll move $15k here and $50k there to some of your client base. Your business model continues to be charging 1% of assets under management per year. Client need: satisfied. Impact to your firm: minimal. Future asset outflow to cryptocurrency: zero."
charlesdm 8y ago
There are 15 million HNWIs in the world (net worth >$1m, excluding main residence). There are also 180,000 UHNWIs in the world (net worth of at least $30m).