Investment robo-advisor Betterment has partnered with crypto exchange Gemini to launch a crypto investment portfolio service for its clients. From October 2022, Betterment’s 730,000 customers will be able to access Gemini functionality on the platform.
Key points to remember
- Betterment has partnered with Gemini to offer clients personalized crypto investment plans based on risk profiles and interests.
- Betterment said he hopes to instill in clients a desire to invest in cryptocurrencies for the long term, with assets coming from those listed on the Gemini crypto exchange.
- The Betterment-Gemini deal is one of many similar moves by established financial services firms, showing continued interest in crypto despite the overall bear market.
Betterment Adds Custom Crypto Wallets Thanks to Gemini Deal
The partnership between Betterment and Gemini will allow Betterment’s 730,000 clients to access personalized crypto investment plans based on their risk profiles and interests, starting in October 2022. The digital assets will be sourced from the platform by Gemini. The exchange has a relatively rigorous process for listing tokens.
Betterment officials said the option aims to foster a long-term focus in crypto investing because “the burden of selecting assets and managing those assets” is removed from clients. The idea of the company is to give customers easy access to crypto investments, with less risk associated with crypto.
Betterment is a robo-advisor that offers its users several products to help them with their investments. One of the main features of the platform is the customization of investments. To make this possible for clients’ crypto investments, Betterment acquired crypto-robot advisory startup Makara in February 2022.
The partnership is also another Gemini initiative that focuses on working with established financial firms. The exchange, which is known to be very compliance conscious, has launched a crypto rewards card in partnership with Mastercard and also in partnership with Australian fund manager Holon Global Investments.
Fidelity and others are also diving deeper into crypto despite the winter
The partnership between Gemini and Betterment is just one of many that show that traditional legacy institutions have a strong interest in the crypto market. One of the most notable entities in this regard is Fidelity, which announced earlier in the year that it would allow investors to diversify their 401(k) accounts with Bitcoin. The digital asset account, as it’s called, gives companies access to bitcoin – and MicroStrategy has already jumped on board.
At the same time, Société Générale also offers custody services through a collaboration with Arquant Capital. This allows fund managers to offer crypto within the European regulatory framework and is a breakthrough for the fourth largest banking group in the European region.
Institutional investors appear to be the entities’ primary target, with Nasdaq also set to launch institutional Bitcoin and crypto custodial services. This is a huge step forward for the Nasdaq, although the move still requires regulatory approval. As for retail investors, Fidelity would consider offering Bitcoin to this group.
The cryptocurrency market has come under a lot of criticism in recent months over its volatility, but recent deals indicate that some established financial services companies are not deterred at all. Analysts expect the market to rise from here, with bitcoin holding more or less at its current support levels. With more regulations to come and better overall infrastructure, institutions can view the crypto market with optimism.