Betterment adds crypto portfolios to investment options
Betterment is integrating technology it acquired through the purchase of crypto-adviser Makara to add digital assets to its portfolio of investment offerings for consumers and financial advisers.
Why it matters: Despite a downturn in the crypto market, many investors still view digital assets as an important part of their portfolios, and this move responds to that demand.
What’s happening: Betterment is launching four thematic crypto offerings that users can add to their investment portfolios, each of which has a different mix of assets depending on their interests and risk tolerance.
- The curated offerings are made up of 25 different digital assets, including bitcoin, ethereum, solana, and other tokens, as well as DeFi protocols like aave, uniswap and compound.
- Betterment is partnering with crypto exchange Gemini to offer the new managed investment portfolios.
Of note: Betterment will charge a 1% annual fee for the crypto offering, compared to 0.25% for its traditional investing plan and 0.4% for customers who have access to human financial advisers.
Flashback: When the company acquired Makara in February, Betterment president Mike Reust said it was adding digital assets in response to customer demand.
- "It’s become clear that crypto is interesting to customers, and it's not going away," Reust said at the time.