NEW YORK—Mundane back-office concerns are giving pause to potential investors in digital currency hedge funds who have otherwise warmed up to the volatile asset class.
Traditional custodian banks such as Bank of New York Mellon Corp. and State Street Corp. do not yet handle crypto assets like bitcoin. That means hedge funds have been forced far from Wall Street to places like Springfield, Pennsylvania, or Murray, Kentucky, to find auditors, custodians, and record-keepers, according to fund disclosures and executives.
