Roboadvisor Betterment launches cryptocurrency offering with four themed wallets • TechCrunch

Betterment, a roboadvisory platform that manages over $33 billion in assets, has finally launched its cryptocurrency offering after completing a private beta phase. Makara, a crypto asset management startup, was acquired by fintech last February and has been turning Makara into its own in-house crypto product since the deal was struck.

Crypto for Betterment, as the new offering is called, debuted with Betterment’s 730,000+ customers today with four customizable wallets that will allow users to invest in curated selections of digital assets, according to the company’s vice president of crypto, Jesse Brodman. TechCrunch in an interview.

According to Broadman, the four wallets launched today contain approximately 25 different cryptocurrencies each and are categorized as follows:

• “Universe,” which claims to offer broad exposure across the crypto landscape and includes currencies such as Bitcoin, Ethereum, Chainlink and Filecoin
• “sustainable,” which focuses on green blockchains including Ethereum, which recently moved to the PoS transaction verification mechanism, and other point of sale chains such as Solana and Tezos
• “metaverseConsists of assets involved in immersive online experiences such as gaming and digital commerce, such as the tokens used in Decentraland and Sandbox
• Decentralized financewhich contains native tokens for DeFi protocols including Aave, Uniswap, and Compound

Brodman noted that the offer will include a feature directing users to limit their exposure to cryptocurrencies to 5% of their investable assets as a hedge.

“Too many of our customers are either interested or already invested [in crypto], but they feel pressured with the nature of the business yourself, especially when you combine that with the speed of change occurring in this asset class. So they gave feedback that this kind of managed, curated show was their interest,” Brodman said.

Makara, which is registered with the US Securities and Exchange Commission, launched 20,000 clients and $1 million in assets under management last June, according to Decrypt.

Betterment announced last month that it would partner with crypto exchange Gemini, led by the Winklevoss twins, to develop crypto wallets and act as custodians of the assets. The company’s last known fundraising to the public was a $160 million round announced in September of last year, which raised $1.3 billion.

The company has been relatively slow compared to other investment platforms like Robinhood and Acorns in adding cryptocurrencies to its portfolio, perhaps in part because it wants to focus on messaging about the importance of long-term investing, especially since the cryptocurrency markets remain volatile. The launch of Betterment comes just one week after the Stash investment app announced its offering of cryptocurrencies enlightened by its long-term, anti-trading ethics that contrast with the short-term trading mindset often associated with the rise of Robinhood.

Originally published at San Jose News Bulletin