What You Need to Know
- The firm is mulling how to let investors access cryptocurrencies while maintaining its focus on long-term investing and education, CEO Sarah Levy says.
- Crypto is countercyclical and can help diversify portfolios, she said.
- Betterment reported a record-breaking first quarter with assets growing 50% over a year ago.
Betterment, the largest independent digital advisory firm, with $30 billion in assets, is considering how it can offer cryptocurrencies on its platform.
“What we’re doing is really trying to figure out: Is there a way that we can offer crypto with a guided wrapper so that we can help educate along the way?” said Betterment CEO Sarah Levy in a recent video interview with Andy Serwer, editor-in-chief of Yahoo Finance.
Wealthfront, Betterment’s closest competitor in the independent digital advisory space, announced in April it was “exploring options to enable clients to add crypto” to their portfolios.
“I’m a big fan of crypto. I think it’s a really interesting asset class to add into the mix,” said Levy, saying cryptocurrency is countercyclical and can help investors diversify their portfolios.
But crypto is volatile, and that volatility may be an issue for Betterment.