The largest independent digital investment advisor in the US enters the crypto space

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The largest independent digital investment advisor in the US, Betterment, recently announced acquiring Makara, an innovative manager of cryptocurrency portfolios.

The acquisition of the Seattle startup that offers “thematic baskets,” designed to meet various goals and interests, will enable Betterment to offer managed crypto portfolios in an all-in-one platform.

With over $33 billion in assets under management and more than 700,000 clients, Betterment entering the crypto market could represent a notable adoption bump.

Adding Makara’s offerings to Betterment’s platform

Reducing the complexity and risks involved in individual stock trading, Betterment offers expert-built, equity 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,” said Sarah Levy, Betterment’s CEO.

By acquiring Makara, which offers simple, expert-managed crypto portfolios, Betterment moves into the crypto space–strengthening its platform and differentiating its product suite.

“Makara is unique in offering consumers managed crypto portfolios combined with the guidance and ease-of-use that have defined Betterment. Makara is to crypto today what we are to traditional investing, since pioneering robo-investing a decade ago,” added Levy.

Once built, Betterment’s new crypto portfolios will be offered alongside its current suite of investments.

SEC-registered to offer automated crypto portfolios

Spun out of Strix Leviathan, a crypto trading and management service for enterprises and institutions, Makara is among the first crypto robo-advisors to be registered with the US Securities and Exchange Commission (SEC).

“When Betterment’s CEO Sarah Levy reached out in November, it felt like fate had aligned to bring our firms together. We believe Betterment history as a leading digital asset advisor, coupled with our purpose-built crypto investment platform makes for a formidable combination,” commented Makara CEO Jesse Proudman, who founded Strix in 2018.

So when Betterment’s CEO Sarah Levy reached out in November, it felt like fate had aligned to bring our firms together. We believe @Betterment history as a leading digital asset advisor, coupled with our purpose-built crypto investment platform makes for a formidable combination.

— Jesse Proudman (@jesseproudman) February 8, 2022

Makara launched last June with a waiting list of 20,000 customers eager to choose from the company’s set of thematic baskets–tailored to cater to different risk appetites.

According to the announcement, the company’s team of crypto experts and engineering talent will be joining Betterment upon the closing of the transaction–expected later this quarter.

Further details of the deal were not disclosed.