Betterment, the robo-advisor investor, launched a cryptocurrency investing portfolio service for its 730,000 users, in collaboration with cryptocurrency exchange Gemini.
Customers of Betterment will now have access to personalized cryptocurrency investing strategies based on their risk profiles and interests thanks to the relationship.
The Gemini platform will provide the digital assets. Tokens must go through a rather rigorous process before being listed on the exchange.
Also, Betterment representatives have stated that the choice is intended to encourage a long-term perspective when it comes to investing in cryptocurrencies because it relieves clients of “the burden of asset selection and the administration of those assets.”
Besides, the company’s goal is to provide clients with simple access to cryptocurrency investments while minimizing the dangers involved.
Betterment is a robo-advisor that gives its clients access to a variety of tools to assist them with investing. The personalizing of investments is one of the platform’s main benefits.
In addition, Betterment purchased the cryptocurrency robo-advisor firm Makara in February 2022 to expand this to include clients’ cryptocurrency assets.
Furthermore, the newest collaboration is just another step in Gemini’s strategy to collaborate with well-known financial institutions. The exchange, which is known for placing a high priority on compliance, teamed up with Mastercard in 2021 to launch a cryptocurrency rewards card.
That same year, they also collaborated with Australian fund manager Holon Global Investments to raise money to purchase Filecoin, the largest decentralized storage network in the world.
However, there are other examples, including the relationship between Gemini and Betterment, which demonstrates how traditional legacy financial institutions are interested in the cryptocurrency sector.
Earlier in 2022, the biggest 401(k) management company, Fidelity, declared that it will permit investors to diversify their 401(k) funds with Bitcoin.
MicroStrategy has gone on board as one of the first organizations to sign up for the Digital Assets Account, which offers plan members at businesses that offer 401(k)s access to Bitcoin.
Nasdaq is apparently planning to introduce institutional Bitcoin and cryptocurrency custody services, although the move still needs regulatory permission. Institutional investors appear to be the main target.
