Earlier in December, Second Market's CEO, Barry Silbert, informed the public that:
Second Market's Bitcoin Investment Trust is the first platform for institutional investors to enter into the Bitcoin market. However, the list of requirements are long and they serve as a significant barrier of entry. Bitcoin Investment Trust clients need to be accredited investors, and the investment minimum is $25,000. Though Second Market's Bitcoin offering has seen wild success, their exorbitant fee schedule guarantees less success than if investors had bought and secured the Bitcoins by themselves.
Given that Fidelity promptly reversed their decision to allow their clients to invest in the Bitcoin Investment Trust through their IRA, the tax benefits of IRA investment in Bitcoin became nonexistent. Very clearly, one individual asked their individual account manager at Fidelity if they could invest in Second Market's Bitcoin Investment Trust, to which an affirmative was given. As publicity spread, higher-ups in Fidelity decided to reverse the decision, for no good, or apparent, reason at all.
Thankfully, Fidelity isn't the only IRA provider in the United States. Broad Financial's Ultimate Self-Directed IRA with checkbook control has been putting the 'Individual' back into Individual Retirement Accounts. Since the inception of IRAs in 1974 by the United States government, banks and large moneyed financial institutions have pushed the misconception that IRAs can only be put into stocks, bonds, and mutual funds.
In contrast, Broad Financial's Self-directed IRA retirement funds can be invested directly into real estate, tax liens, small businesses, personal loans, foreclosures, gold, and all other alternative (i.e. non-Wall Street) investments. Now, officially, Bitcoin is also a part of that list.
Broad Financial's COO, Daniel Gleich, had this to say:
"Bitcoin is still at a stage where it is being purchased by early adopters and those who are willing to take a chance on a relatively new asset. The companies who try to push Bitcoin via standard vehicles like trusts and funds are not going to see the best response. A non-custodial IRA, with its freedom of transaction and asset choice, offers the most versatility and profitability, and appeals to those who are willing to get in on the ground floor. Broad's Checkbook IRA fits these criteria, and that's the reason we're making the move with Bitcoin."
I think it is safe to say that there won't be anyone higher up than the COO to reverse Gleich's decision. Broad Financial only charges a small annual fee and is a very competitive option to Second Market's Bitcoin Investment Trust. For more information on Broad Financial's IRAs watch the below video.
Have you decided to add Bitcoin to your retirement plans?
Comment with your thoughts!
Have a Happy New Year!