Digital investment advisor Betterment has acquired cryptocurrency robo-advisory firm Makara. The acquisition's terms were not disclosed. Betterment, which is the biggest independent digital advisor in the United States, pioneered robo-investing—an industry that grew during the pandemic.
The company's CEO Sarah Levy stated that Makara was unique because it combined crypto offerings with guidance and ease-of-use in its interface. «Makara is to crypto today what we are to traditional investing, since pioneering robo-investing a decade ago,» she said.
«Combining our crypto expertise with Betterment's scale will accelerate the growth of the platform with both retail investors and financial advisors,» said Jesse Proudman, CEO of Makara. The startup launched with 20,000 customers and $1 million in assets under management last June.Betterment had $32 billion in assets under management and nearly 700,000 customer accounts in September 2021.
While many millennial-focused apps, like Robinhood, were quick to integrate cryptocurrencies into their offerings, Betterment took its time in coming to the asset class. Crypto's price burst and rising popularity during the pandemic became an impetus for the company to make the acquisition. «We've seen crypto emerge, and you can think of it as an asset class now,” said Mike Reust, president of Betterment. „It is just not reasonable for us to have a story about not having crypto [on our platform].“
The acquisition should help Betterment garner new customers interested in making cryptocurrency investments. „We will help manage large, diversified crypto portfolios,“ explained Reust, highlighting the company's advisory business that includes custodian and financial advisory firms as clients.
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