Betterment Buys Crypto-Focused RIA
The robo–advisor says it is acquiring Makara, an RIA that sells automated cryptocurrency portfolios.
Robo–advisor Betterment says it is buying Makara, an RIA that sells automated cryptocurrency portfolios. The deal, which was struck for an undisclosed sum, means Betterment can help both financial advisors and investors buy crypto assets for their portfolios.
“Crypto is here to stay and Betterment wants to live our promise of long-term diversification and to provide our customers with the best variety of assets in the marketplace,” according to Betterment CEO Sarah Levy.
Betterment, which refers to itself as “the largest independent digital investment advisor” in the U.S., has roughly $33 billion in assets under management and close to 700,000 clients.
“Makara is unique in offering consumers managed crypto portfolios combined with the guidance and ease-of-use that have defined Betterment,” Levy explained in a statement. “Makara is to crypto today what we are to traditional investing, since pioneering robo-investing a decade ago.”
Makara’s team of crypto specialists and engineers will join Betterment when the deal closes, which should be by March 31, 2022, the firms said Tuesday. Makara, which refers to itself as “among the first robo-advisors to register with the Securities and Exchange Commission that offers crypto,” launched its services and mobile app on June 1, 2021.
“We are thrilled to be joining Betterment,” said Jesse Proudman, Makara’s co-founder and CEO in a press release. “We developed Makara to bring an easy and accessible long-term investing approach to cryptocurrencies. Combining our crypto expertise with Betterment’s scale will accelerate the growth of the platform with both retail investors and financial advisors.”
(Image: Adobe Stock)