Gemini intends to give financial advisors access to cryptocurrency for their high-profile clients in the future.
On Thursday, Gemini, a cryptocurrency exchange, revealed that it has agreed to buy Bitria, a San Francisco-based startup that offers standard portfolio management tools for crypto investors. Bitria’s purpose is to create a platform for traditional asset managers and financial advisers to assist their clients with cryptocurrency investments.
Bitria’s Separately Managed Accounts and its Digital Turnkey Asset Management platform are being integrated into Gemini’s exchange capabilities, according to the company. As a result, advisors will be able to access more than 70 different cryptocurrencies through Gemini’s exchange, as well as their clients’ portfolios, all through a single interface. Portfolio rebalancing, tax-loss harvesting, data connectivity, and fee collection are other characteristics.
Like Coinbase’s purchase of FairX, this transaction comes as financial advisors try to meet their clients’ growing demand for crypto investments. Unfortunately, even though cryptocurrencies have grown in popularity, traditional financial advisors frequently have limited access to this environment.
Since the beginning of 2021, according to a survey conducted by the Financial Planning Association and the Journal for Financial Planning in June 2021, 49 percent of advisors have had clients inquire about cryptocurrencies. According to Gemini’s Global Head of Business Development, Dave Abner:
“Many financial advisors would only have access to one or two tokens through closed-end funds and spot crypto ETFs.”
Gemini announced in December 2021 that it would be expanding into new territories through cooperation with Bancolombia, Columbia’s largest bank. A Gemini representative said at the time that the partnership would be “an significant step toward the strategic expansion of Gemini’s footprint in Latin America.”