Betterment, a Digital Advisory Firm Joins Crypto World with Makara Acquisition

Digital investment advisor, Betterment, has bought a crypto advisory company referred to as Makara. The terms and conditions are yet to be disclosed. 

Betterment, one of the top digital currency advisors in the USA, started robo-investing, which grew rapidly during the COVID-19 pandemic era. 

Sarah Levy, the company’s chief executive officer, pointed out that Makara is unique because it provides guidance on cryptos, and its platform is easy to use. She added that Makara is to cryptos just like we are to conventional investing.

Jesse Proudman, the chief executive of Makara, pointed out that combining cryptocurrencies expertise with Betterment operations will help to hasten its growth in retail investors and financial advisors. In June 2021, the startup was started with 2,000 clients and up to USD 1 million in assets under management. Betterment portfolio reached USD 33 billion and close to 700,000 users by September 2021.

Building a Case for Responsible Crypto Investing

While most recent apps that target millennials, such as Robinhood, were fast to integrate cryptos into their products, Betterment took its time. The fast growth of cryptos during the COVID-19 pandemic made it take the decision to buy Makara. Mike Reust, the President of Betterment, indicated they noted crypto emergence and are ready to consider them as part of its assets. Here added that they do not want to have a story of not offering cryptos. 

The acquisition is expected to help Betterment get new clients with interest in cryptos. Reust further added that they would help clients manage big and diversified crypto portfolios

With the current crypto investments in the market poorly or not guided at all, there is little personalized advice, and clients can get confused. Reust cited the example of Coinbase. The crypto exchange, which is one of the biggest in North America, provides videos and posts on cryptos but does not have personalized investment advice. 

Acquiring Makara will come in handy in improving Betterment’s portfolio outcomes through advice on how to responsibly diversify into cryptos. This implies that with Betterment, clients can avoid making random decisions because of crypto price changes or news. Instead, every client will be assisted to invest in cryptos based on his/her personal goals.

However, this is not easy in a cryptocurrency field full of many uncertainties, such as taxation and regulations. Betterment is helping to remove uncertainty in crypto investing through automation and integrating changes that are introduced along the way. Reust emphasizes that when new laws are introduced, Betterment will take up the burden and handle the task on your behalf. 

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