Key Takeaways
- • Two Prime Inc., a provider of bitcoin financial services to institutional investors, has registered with the CFTC as a commodity trading advisor (CTA) and become a Member of the National Futures Association (NFA).
- • The CTA registration allows Two Prime to advise qualified clients on bespoke strategies using bitcoin futures, options, and swaps traded on regulated venues.
- • The firm is already an SEC-registered investment adviser, and the CTA status extends its suite of services and its base of institutional clients.
- • Two Prime cites recent compliance upgrades, including completed SOC 1 Type 1 and SOC 2 Type 1 audits under AICPA standards, which address control design at a point in time rather than investment performance or asset safety.
Summary
Two Prime Inc. announced that it has registered with the U.S. Commodity Futures Trading Commission (CFTC) as a commodity trading advisor (CTA) and is a Member of the National Futures Association (NFA). According to the company, the registration allows it to extend its service offering and expand its institutional client base.
Co-Founder and CEO Alexander S. Blume said institutional investors increasingly want bitcoin exposure alongside assurance that the advice they receive is accurate and well informed. He said the CTA registration permits Two Prime to advise qualified clients on bespoke strategies using futures, options, and swaps traded on regulated venues, instruments he described as a prudent tool for managing volatility and pursuing risk-adjusted returns.
Two Prime describes itself as an SEC-registered investment adviser that works with public bitcoin miners, digital asset treasuries, hedge funds, family offices, and high-net-worth individuals. Its investing line accumulates bitcoin through quantitative strategies, and its affiliate, Two Prime Lending Limited, is described by the firm as one of the world's largest providers of bitcoin-backed financing. The announcement follows the completion of SOC 1 Type 1 and SOC 2 Type 1 third-party audits under AICPA standards. The firm's disclosures state that these reports address control design as of a point in time and do not opine on investment performance or the safety of client assets.
The release also carries standard risk disclosures stating that futures, options, and swaps involve substantial risk, that leverage can magnify losses, and that CFTC and NFA registration does not imply endorsement or a certain level of skill. The announcement contains no disclosed assets under management, fee information, or registration timeline.
Co-Founder and CEO Alexander S. Blume said institutional investors increasingly want bitcoin exposure alongside assurance that the advice they receive is accurate and well informed. He said the CTA registration permits Two Prime to advise qualified clients on bespoke strategies using futures, options, and swaps traded on regulated venues, instruments he described as a prudent tool for managing volatility and pursuing risk-adjusted returns.
Two Prime describes itself as an SEC-registered investment adviser that works with public bitcoin miners, digital asset treasuries, hedge funds, family offices, and high-net-worth individuals. Its investing line accumulates bitcoin through quantitative strategies, and its affiliate, Two Prime Lending Limited, is described by the firm as one of the world's largest providers of bitcoin-backed financing. The announcement follows the completion of SOC 1 Type 1 and SOC 2 Type 1 third-party audits under AICPA standards. The firm's disclosures state that these reports address control design as of a point in time and do not opine on investment performance or the safety of client assets.
The release also carries standard risk disclosures stating that futures, options, and swaps involve substantial risk, that leverage can magnify losses, and that CFTC and NFA registration does not imply endorsement or a certain level of skill. The announcement contains no disclosed assets under management, fee information, or registration timeline.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.