Lack of Wall Street back-office deters crypto investments

The example of Bernard Madoff, whose massive Ponzi scheme was enabled in part by an obscure accountant, has only increased investors' wariness

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.

Dealing with this collection of small and relatively unknown firms has sparked concern among potential investors and their advisers, who worry about a lack