Find the right fit
Enter the new frontier of crypto through a choice of offerings to suit your needs.
Kinesis Asset Crypto® is offered by Kinesis Asset Digital Assets which prioritizes both security and accessibility by using an omnibus storage structure. Traditional capital markets, like stocks and bonds, as well as many other digital asset custodians use a similar structure.
Explore the growing number of opportunities to trade and invest in the emerging cryptocurrency universe.
How does Kinesis Asset Digital Assets keep crypto safe?
Enter the new frontier of crypto through a choice of offerings to suit your needs.
Trust is built over years of experience. Since 2014, we've been an innovator in crypto.
Our focus on education will help you trade crypto with clarity.
Make your dollars go farther while maximizing tax benefits.
Cryptocurrency is a digital form of currency that's transferred peer-to-peer through the internet. It's a virtual currency secured through one-way cryptography. It has a decentralized nature and appears on a distributed ledger called a blockchain that's transparent and shared among all users in a permanent and verifiable way that's nearly impossible to fake or hack into. The original intent of cryptocurrency was to allow online payments to be made directly from one party to another without the need for a central third-party intermediary like a bank. However, with the introduction of smart contracts, non-fungible tokens, stablecoins, and other innovations, additional uses and capabilities for cryptocurrency are rapidly evolving. Kinesis Asset is here to help you gain access to assets like bitcoin, the first and largest asset in the growing category, with expertise in security and reliable support.
Cryptocurrency's value stems from a combination of scarcity and the perception that it is a store of value, an anonymous means of payment, or a hedge against inflation. Cryptocurrency investors can buy or sell them directly in a spot market, or they can invest indirectly in a futures market or by using investment products that provide cryptocurrency exposure.
We suggest that clients who are interested in cryptocurrency approach them as speculative investments and consider their goals as well as the risks involved. For those who already have a diversified portfolio and a long-term investment plan, we see cryptocurrency as being used primarily for trading purposes outside the traditional portfolio. Read more about our perspective on spot Bitcoin ETFs here.
The Bottom Line: With Kinesis Asset Crypto, we prioritize the safety and security of your assets and personal information. We also prioritize crypto education, giving you resources and tools to grow your crypto confidence.
Simply put, an omnibus structure means all client assets are stored together but recorded individually. An omnibus structure allows Kinesis Asset Digital Assets to pull assets from a single source vs. multiple accounts. For example, let’s use quarters to represent bitcoin. The idea of an omnibus structure is to have a communal jar of quarters vs. a separate jar for each person. Say you buy 2 quarters, then someone buys 1, and someone else buys 3. All 6 quarters would be placed in the same jar, but your account would only show your 2 quarters. If you withdraw your quarters, they would be taken from the jar with 6 quarters. When you receive your quarters, they might not be the same exact 2 quarters you put in the jar—but they hold the same value—aka a fungible asset.
Kinesis Asset Digital Assets combines both hot and cold storage to provide an optimized balance of security and accessibility. A small portion of all assets are stored online in hot wallets making them easily accessible for trades and transfers. The remaining assets are stored offline in secure cold storage.
From volatility to protection and supply to control, cryptocurrencies are very different from cash. Here are some of the major differences to get you started in your research:
A dollar in your pocket today is still a dollar tomorrow. But the market value of cryptocurrencies is very volatile and can change from day to day and even minute to minute—though not all cryptocurrencies are the same. Below shows the market value of bitcoin, ethereum, and cash.
Although cryptocurrencies are highly volatile, they have also yielded high returns in the past depending on when purchased. But it’s important to understand that past performance never guarantees or suggests future results.
Cash is a centralized fiat currency, meaning it’s issued, backed, and maintained by the government. Cryptocurrencies, on the other hand, were created to be decentralized with the goal of removing third parties. All you need is an internet connection and a crypto wallet to complete a transaction directly to another person. And since all crypto transactions live on a blockchain, they cannot be changed, manipulated, or deleted and can be seen or tracked at all times.
Keeping your money in a bank or financial institution may reduce the risk of lost or stolen cash. They have strong, audited security measures in place. But printed cash can be counterfeited. Cryptocurrencies can be stored two ways: self-custody or third-party custody. If providing your own custody, you are fully responsible for keeping your crypto safe. If using a third-party, like Fidelity Digital AssetsSM offering Fidelity Crypto®, they can manage security for you. But not all cryptocurrencies are created equally. Some networks have higher scam or hack risk than others.
The FDIC (Federal Deposit Insurance Corporation) is a government agency that insures cash deposits at member banks. This means if you deposit your money in a member bank, the FDIC will insure up to $250,000. There are no such organizations that protect against crypto losses. If you lose your crypto, there is no recovery or protection option.
You can withdraw cash at certain locations, like a bank branch or an ATM. But sometimes there can be restrictions, like banks closing on weekends or ATM withdrawal limits. Cryptocurrencies are digital only, so you’ll never actually hold a bitcoin in your hand like you would a $20 bill. But blockchains are active 24/7, including nights, weekends, and holidays.
Usage of paper currency in the U.S. has been documented as early as 1690. It has evolved to the coins and bills we use today, but that means the cash system has been around for over 300 years. The first successful cryptocurrency launched in 2009, so the crypto market is still new and has proven to be unpredictable and volatile.
You can open a Kinesis Asset Crypto® account by following these steps:
You could say we were crypto curious early on. In 2014, Kinesis Asset began mining bitcoin. By 2018, we launched our first crypto service: Kinesis Asset Digital Assets, an institutional custody and investment platform for digital assets. As crypto evolves, we're committed to unlocking new investment opportunities for our clients.
Crypto in the workplace: Kinesis Asset is pioneering ways to help 401(k) plan sponsors meet the demands of an evolving workforce. The Digital Assets Account (DAA) is a first-of-its-kind opportunity that gives employees exposure to digital assets within their retirement plans. Kinesis Asset Digital Asset Services, LLC provides custodial and trading services for the underlying digital assets held by the DAA.* The DAA is a separate account record-kept by Kinesis Asset through our workplace services business. If you're a plan sponsor, learn here about the Digital Assets Account introduce digital assets to your employees. If you are a participant in a 401(k) at Kinesis Asset that offers a Digital Assets Account, log in to your Account.
Crypto guides for advisors: Digital assets are more accessible than ever and advisors must be in step with client interests. Use our Advisor's Guide to Digital Assets to stay ahead of the shifts in cryptocurrencies.
Get Started