Crypto IRA platform iTrustCapital raises $125 million in Series A funding

iTrustCapital has raised $125 million in Series A funding led by Left Lane Capital. Read the full article by Yogita Khatri “Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.”

With cryptocurrencies continuing to evolve there are always new ideas popping up to expand the use cases and accessibility. The last few weeks there have been a lot of commercials advertising for crypto IRAs noticeably, to me at least, during some playoff football games in particular. This would allow people to take advantage of the tax flexibility of their current individual retirement accounts.

One of those companies venturing into this new opportunity is iTrustCapital which allows users to directly buy certain cryptos through their current IRA. This idea has resulted in $125 million in funding with about $100 million invested by Left Lane Capital alone. This was the first funding round for iTrustCapital and it already brings their valuation to $1.3 billion after only two years of operating.

The difference between buying through a crypto exchange as opposed to through an IRA is the tax advantages. This is significant because of the current unclear regulations that crypto traders currently face. One option traders have is to just follow the tax guidelines of the stock market for now. The other advantage is that, based on US rules, assets in an IRA must be custodied by the IRA platform making it safer than holding in self custody.

For crypto native people self custody is the preferred method of custody as it makes us our own bank. Another major drawback is that since it is a retirement account you are hit with a penalty if funds are withdrawn before you are 59.5 years old. There are pros and cons to investing through an IRA as with anything else but this shows that companies are trying to target a younger audience to start planning their retirement.