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Insurance in Your Cryptocurrency IRA - What There Is To Know

By iTrustCapitalAugust 11, 20202 minutes read

Insurance of cryptocurrency is an area of the industry that still needs to mature. Like institutional custody a couple of years ago, insurance in the space is lacking. One of the largest cryptocurrency exchanges created their own insurance because there was no other viable solution. Options for cryptocurrency insurance, just as with custody, continue to develop slowly but surely.

We get asked about insurance regularly and rightly so. Our clients are moving large amounts of their funds into our care and want to make sure it is safe. For that reason, we work with Coinbase Custody and Fireblocks, institutional wallet providers that are SOC 2 Certified, and custody digital assets for large financial institutions all over the world. 

Learn more about Coinbase Custody here.

Learn more about Fireblocks here.


Coinbase Custody - $320 Million Insurance Policy

Coinbase's insurance policy is provided by a global syndicate of A XV/A+ rated insurers, including Lloyd's of London. It is brokered through AON Risk.

Learn more on The Coinbase Blog: A unique look under the hood of one of the world's most comprehensive crypto insurance programs


Fireblocks - $42 Million Insurance Policy 

Munich Re, established in 1880, performed extensive security audits on Curv’s technology before issuing the policy, which is a testament to MPC protocol and the robustness of Curv’s implementation.

Learn more on Cointelegraph: Curv Secures $50 Million Insurance for Customer Crypto Assets

The Reality About The Insurance

Coinbase Custody is one of the leading institutional cold storage providers in the world. It is are SOC 2 certified and maintains a $320 Million insurance policy. Learn more about Coinbase Custody. Curv utilizes MPC Cold Storage, is SOC2 certified, and stores digital assets for institutions like Franklin Templeton and eToro. They also have a $50 Million insurance policy. Learn more about Curv. There is not nearly enough claim history in the digital asset space for any firm to suggest that their insurance policy fully protects client funds. We are still far away from there being comprehensive umbrella coverage available for digital asset storage providers.

Competitors are price gouging

We've studied the competition so we can provide the best platform and customer experience in the market. We have found that one competitor, in particular, attempts to use insurance as a sales trick and marketing gimmick.

An example is our competitor, "Bitcoin IRA" which touts its custodial partner Bitgo's insurance policy.  They point to this policy and use it as the primary reason to charge up to 12.5% transaction fees, which is 1,150% higher than iTrust's transaction fee of only 1%.  

Our Competitor "Bitcoin IRA" has transaction fees are in addition to account and storage fees of:

  • $240 per year account fee

  • .05bps of account value per month storage fee (.60bps per year) 

Their account/storage fees should be plenty to cover the insurance offered through Bitgo without having to charge excessively high transaction fees on top.

Example with Competitor A: $100,000 Account = $840 account/storage fees per year.

Same example with iTrustCapital: $100,000 Account = $359.40 account/storage fees per year ($29.95 per month).

Insight over Emotion

Consumers need to do research and make investments based on proper analysis, not marketing designed to manipulate their emotions 

We are still in the early stages of this new asset class, and many areas can be improved. At iTrustCapital, we commit ourselves to offer the most secure, easiest to use, and the lowest cost crypto and physical gold IRA platform. We are also committed to full transparency, which is counter to many of our competitors.