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Portfolio > Alternative Investments > Cryptocurrencies

Betterment Launches 4 Crypto Portfolios

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Robo-advisor Betterment on Wednesday launched its cryptocurrency offerings — four diversified portfolios branded as Crypto Investing by Betterment.

The digital platform will offer the portfolios, available to retail investors and to financial advisors to make available to their clients, alongside its traditional investing products.

Betterment described the the curated offerings in a press release, noting that the platform features a diversified collection of cryptocurrencies, including Bitcoin and Ethereum, offering broad exposure to the crypto landscape, including decentralized finance and the metaverse.

Offerings includes cryptocurrencies that transact sustainably or those on networks with a path to sustainability, such as Proof of Stake Ethereum, according to Betterment.

“We are excited to introduce a crypto product that helps to simplify this emerging asset class,” said Betterment CEO Sarah Levy. “Expert-built portfolios, coupled with educational content, will guide interested Betterment customers into digital assets. Our aim is to be a trusted partner to our customers and empower them to make crypto a part of their long term investing strategy.”

Betterment said it will recommend that customers limit their crypto exposure to no more than 5% of their investable assets.

Last month the firm announced it was partnering with Gemini to offer crypto investing portfolios to its customers across its retail and advisor channels. Betterment has over 730,000 customers. Betterment’s curated crypto portfolios are constructed from digital assets listed on the Gemini Exchange, with Gemini acting as Betterment’s crypto custodian.

Thomas Leahy, senior financial analyst, Condor Capital Wealth Management, said in a statement that Betterment’s offering a cryptocurrency add-on option “is a natural evolution for the platform, which tends to cater to younger investors. Instead of needing a separate relationship, Betterment’s add-on option is a way for customers to access crypto investing alongside low-cost ETF portfolios and financial planning under one roof.”

The advice to hold no more than a 5% crypto allocation “is a welcome piece of advice as long-term retirement goals can be thwarted by the allure of short-term speculation, he added. “Meanwhile, if robo-advisors turned a blind eye to this asset class, younger investors may feel the fear of missing out and therefore be driven to online brokerage platforms that do not have these guidelines in place.”

Betterment’s live human advice and digital financial planning tools “can help those with crypto in their portfolios keep this volatile investment in the right context, their retirement,” Leahy said.


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