With nearly $30 billion of assets under management and over 600,000 customers, Betterment is now looking to provide crypto services.
Sarah Levy – the CEO of the investment app Betterment – revealed that the company is contemplating how to enable its users to interact with cryptocurrencies. The executive admitted that she is a “big fan” of digital assets and that they have the ability to “diversify” the investors’ portfolios.
‘Is There a Way We Can Offer Crypto?’
In a recent interview with Yahoo Finance, the chief executive officer of Betterment – Sarah Levy – asserted that the company contemplates how to provide long-term crypto services to its clients. She believes investors would benefit the most if they adopt the popular HODLing strategy::
“I think how that will manifest itself will be more through a lens of a long-term buy and hold the asset as a smaller portion of a portfolio, rather than as sort of a trading opportunity short term.”
Levy agreed with the crypto critics that the market is “volatile.” On the other hand, she asserted that Betterment could reduce the risks of dealing with digital assets by educating its user:
“We know investors increasingly have an interest in crypto, so 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?”
According to Levy, cryptocurrencies are “countercyclical,” which means that they perform well even when the economy passes through harsh times.
Speaking on a personal level, the CEO admitted she is supportive of digital assets and that they are an attractive investment strategy:
“Personally, I’m a big fan of crypto and I think it’s a really interesting asset class to add into the mix. There’s an opportunity really to help your diversification plan with crypto.”
Point72 Also Turned its Sight to Crypto
According to Bloomberg, the American hedge fund – Point72 Asset Management – also gave indications of future crypto involvement. The Chairman and CEO of the company – Steve Cohen – is seeking to hire a head of digital assets.
Back in May, Point72 addressed a letter to investors, in which it highlighted the benefits of the crypto market:
“We are exploring opportunities around blockchain technology and its transformative and disruptive capabilities. We would be remiss to ignore a now $2 trillion cryptocurrency market.”
The aforementioned developments highlight the recent growth in terms of cryptocurrency adoption from representatives of the traditional financial space. Another example came earlier when reports emerged indicating that the private American investment management firm – Soros Fund Management – is now trading bitcoin.