What Services Do a Crypto Fund Administrator Offer
Some years ago, cryptocurrencies rarely registered on the radar of various fund administrators. But this situation has changed at a remarkable pace. In the year 2020, the total assets of crypto hedge funds under management were predicted at 43.8 billion. It is an increase of around 2 billion dollars in 2019. It also doesn't take into account all the investment streaming into venture capital and private equity funds investing in projects related to crypto and technology. A reputable crypto fund administrator has experience working with more than 300 crypto funds. Thus, if you want to work with a good cryptocurrency fund administrator, you should consider their experience, technology, and expertise in it.
What Are Crypto Fund Administrator Services
Comprehensive cryptocurrency fund services include fund accounting, investor services, regulatory support, and financial statement preparation. Here are some critical services through which you can benefit.
Fund accounting service
It includes monthly, weekly, daily, and quarterly fund accounting. This service also comprises the following.
Fund performance calculation
Allocations of income/expense to investors
Full audit support
Cash reconciliation
Calculation of performance and management fee.
Investor services
A fund of fund administrator provides a range of investor services. They are as follows.
Direct transaction confirmations.
Process redemptions and subscriptions.
Investor web portal and safe investor reporting.
Regulatory and compliance assistance
It includes services related to reporting audit support. The services comprise OPERA reporting, US FATCA, CRS, and UK FATCA compliance, and NFA/CFTC audit and reporting support.
Preparation of financial statement
Financial statement preparation services include calculating financial highlights, reporting of IFRS and GAAP, and the creation of footnotes to be included in financial statements.
Reporting solutions
A reputable cryptocurrency fund administrator services have professionals experienced with public and private blockchains, hot and cold wallets, and ICOs. They have connectivity to certified Cryptocurrency Custodians. They possess proprietary portfolio reconciliation technology as well as skilled IT and fund accounting teams for cryptocurrency funds.
The Significance of Cryptocurrency Fund Administrator Service
The crypto universe is scrambling to establish access to exchanges, new technology, administration, custody, AML/KYC checks, auditing, and data services to enable cryptocurrency to appear like other conventional asset classes. These services are crucial and require to be put in place for institutional investors to commit themselves fully to this novel asset class.
Cryptocurrencies are quite volatile and trade round the clock. Thus, it makes crypto hedge funds very challenging to manage. The crypto landscape is highly dynamic, and it is defined by continuous innovation and a transforming exchange and custodial scene. You need to gain rapid and correct access to data. So, a cryptocurrency fund administrator helps you keep pace with different challenges.
Final Words
It's essential to work with a crypto fund administrator with an experienced admin team in the space of cryptocurrency. They should provide rapid data delivery. Only such administrators have the requisite crypto expertise and understand the new market well.
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