Tell me about the background/history of Iconomi

ICONOMI’s story began in 2016 when crypto was still largely unexplored territory—a fascinating new world but intimidating at the same time. Tim and Jani, the founders, saw an opportunity to bridge a gap, creating a platform that made it easy for people to start investing in crypto without navigating the complexities that often come with it.

That’s how ICONOMI was born. We were one of the first platforms to let people invest and manage their crypto investments without needing to be experts. Our mission remains to make digital asset investments and management simple, secure, and transparent for retail and institutional users.

What is the firm’s offering :

–              for retail clients?

For retail clients, our goal is clear: to make crypto investing accessible to everyone, regardless of their expertise. Users can easily invest in crypto portfolios that automatically index the market or a sub-segment of the crypto market. We’ve worked hard to make the process as straightforward as possible so anyone can manage their crypto portfolio without feeling overwhelmed.

Plus, we offer tools like automated profit-taking and stop-loss features to make the entire experience smoother and more user-friendly. More advanced retail users can also create and manage their own crypto strategy.

–              For institutional clients, including wealth managers and advisers?

We provide robust tools for wealth managers, advisers, and institutional investors to meet the growing demand for digital asset exposure. These include digital assets portfolio management, a white-label platform, custody, trading and reporting tools that make it easy for them to integrate crypto into their existing offerings.

Essentially, we help them unlock a whole new asset class for their clients.

How does the platform work for all types of investors?

The core of the platform works similarly for all investors. We take great care to pre-screen and only list compliant tokens as well as real time monitoring of each token liquidity. That is done in the background, without the users noticing it. Same is valid for arranging a secure custody of all crypto-assets on the platform.

Users focus on creating their own crypto investment strategies, set rules and automation to suit their goals or copy a strategy that aligns with their personal or business objectives. We handle the heavy lifting—like portfolio rebalancing and trade execution—while ensuring full transparency and control. We’re connected to most of the major exchanges, which means that our users get access to the best possible liquidity and prices when it comes to executing their trade orders. We at all times remain independent from trading platforms, as we side with the users.

What do cryptocurrencies offer to retail clients/institutional clients?

The role of cryptocurrencies has evolved significantly in recent years. While they were once seen mainly as a speculative asset class, the industry has matured, and crypto now represents an efficient way to diversify financially.

In essence it offers both segments the same – an opportunity for diversification and a way to mitigate economic uncertainties while appealing to forward-thinking clients looking for modern investment options. Bitcoin stands out of the pack, as it has reached a different status with institutional investors as well. 

Do you actually invest in cryptocurrencies directly?

Me personally? Of course. Up to a certain per cent risk-reward is acceptable, so I invest roughly 10 per cent of my overall portfolio. I am actually quite a conservative investor, maybe a bit biased on crypto.

We also invest in crypto as a company and hold roughly 20 per cent of our treasury in crypto. This simple strategy has paid off very well over the last eight years, and I would recommend that business owners take this opportunity if they have not yet explored it.

What is your offering using ETPs?

–              we don’t offer ETPs

Our offering is even simpler than an ETP. Our platform empowers users to create and manage any kind of crypto portfolio that fulfils the same goals as a crypto ETPs. Automated rebalancing, real time price information, custody, ease of use, transparency and diversification benefits … Everything is inbuild into our platform. On top of all this Iconomi allows a user to create and manage his own investment strategy – in a sense create his own “etp equivalent”. 

We offer tools for asset managers and institutional investors to build and oversee personalised crypto portfolios for their clients. At the same time, individuals can use our curated portfolios to begin their crypto investment journey. This solution makes it easier to include digital assets in modern investment strategies without depending on traditional ETP structures or IT providers.

How safe is an investment in cryptocurrencies for a retail client/institutional client?

Investing via a regulated/registered crypto provider should be safe nowadays. It is crucial to select providers that are registered with the local regulator. If an investor would take the de-fi route, it might get a bit more tricky.

Safety is a top priority at ICONOMI. We know it’s the first thing people worry about when considering crypto investments, exactly because of the nature of the assets. That’s why we’ve built our platform with security at its core. We work with trusted custodians and use cold storage for assets, among other measures, to keep funds safe from potential threats. Our security protocols are constantly updated and audited.

We’ve also ensured our tools are designed to help retail and institutional clients navigate the volatility of crypto markets. Diversification through automated portfolios, trailing stop loss or automated taking profit rules and others make it easier to spread risk and invest with confidence. We offer even more robust solutions for institutions, including compliance-friendly options and detailed reporting to meet regulatory needs.

How is custody managed through your platform?

Users on Iconomi have 24/7 access to all their crypto-assets, while banks still only work until 4 p.m. The majority of the assets are kept in cold storage to increase security. We also employ a multi-custody strategy and work with multiple custody providers. This allows the user to manage all his crypto-assets in one place while at the same time diversifying their custody and lowering the risk by not keeping “all eggs in one basket.”

How do you manage investments in multiple cryptocurrencies?

Our platform is designed for diversification and flexibility. Users can invest in multiple cryptocurrencies by either copying a strategy that matches their goals or managing their own custom portfolio. We offer access to 150 assets, including widely known ones like Bitcoin, Ethereum, and Solana. To limit exposure and enhance security, we make some of the more volatile assets available only through managed strategies.

Have you seen much appetite for financial advisers and wealth managers to offer cryptocurrency-based investments to their clients?

We’ve seen significant interest growth in crypto over the past few years. Also, on our platform, business accounts have grown exponentially since 2022.  There was a lot of hesitation in the early days, but now, financial advisers, wealth managers, and businesses embrace crypto as a legitimate addition to their clients’ portfolios. ICONOMI has played a role in this shift, providing the tools and education they need to navigate these waters. It’s been rewarding to see this adoption grow and to be part of the journey as the financial world embraces crypto.

Apex Group writes that it is a leading global provider of financial services with over 13,000 employees globally, adding that this is a significant step in GAM’s strategy to streamline its operations and focus on its core investment management capabilities for clients. This transaction is subject to applicable regulatory approvals and other customary conditions.

Since 1983, GAM writes that it has provided clients with access to great investment talent, from High Conviction Equities to Specialist Fixed Income, Multi-Asset Solutions and Alternatives, often supported heavily by its own innovative Fund Management Services. Today, these services are highly commoditised and more cost-effective when outsourced, allowing GAM to focus on what it does best; benchmark beating, active Investment and Wealth Management.

The agreement to transfer includes the sale of GAM Fund Management Ltd, Dublin (GFML), including its in-house transfer agency function to Apex Group. The agreement reached also means that GAM and Apex Group will transfer management company services for GAM funds in Luxembourg and the UK to corresponding subsidiaries of Apex Group.

Apex Group offers a global single-source solution providing all services required across the full value chain of the business via one convenient and efficient relationship.

The partnership with Apex Group will also bring the following key benefits to GAM and its clients, the firms say:

Improved client service: Clients will benefit from streamlined services and enhanced support as GAM integrates with Apex Group’s robust platform, services and capabilities.

Focus on core competencies: Allows GAM to concentrate more on its core investment management capabilities, ensuring that resources are directed towards the pursuit of superior investment performance for clients.

Enhanced efficiency: The transfer of management company services enables GAM to consolidate its operations, reduce complexity and increase operational efficiency.

Scalability: By leveraging Apex Group’s first-class expertise, services and infrastructure, GAM will be better positioned to scale its operations and respond to market demands.

Elmar Zumbuehl, CEO of GAM, says: “This agreement with Apex Group is a testament to our commitment to focus relentlessly on behalf of our clients to do what we do best – providing access to great investment talent, distinctive investment solutions, first-class service, and global distribution. We are confident that this partnership will enhance our capabilities supported by a robust, efficient and highly scalable operational framework. We look forward to a successful collaboration with Apex Group and the benefits it will bring to our clients and future capabilities.”

Peter Hughes, Founder and CEO of Apex Group, says: “Apex Group is a leading global financial services provider offering a full suite of services to the industry and we welcome GAM into the Group. We are extremely pleased to support their strategic objectives. Our expertise in management company services will provide GAM with the operational efficiency and scalability needed to thrive in today’s competitive market. We are excited to embark on this journey together and deliver exceptional value to GAM’s clients.”

The completion of the sale of GFML and the transfer of management company services in Luxembourg and the UK is expected by the end of Q4 2024.