A digital investment expert is stepping into the crypto arena.
Makara’s Unique Offering
According to Sarah Levy, the CEO of Betterment, Makara distinguishes itself by merging crypto solutions with user-friendly guidance through its interface. “Makara’s role in the crypto domain today mirrors the role we have played in traditional investments since we pioneered robo-investing ten years ago,” she mentioned.
Expansion and Integration
The acquisition of Makara, a startup focusing on crypto robo-advisory, marks a new chapter for Betterment. By incorporating crypto into Betterment’s existing framework, Makara aims to scale up its offerings. President Mike Reust emphasized that this acquisition would enhance how crypto investors achieve their financial aspirations by custom-fitting investments to their specific objectives.
Accelerating Growth
Jesse Proudman, the CEO of Makara, expressed enthusiasm about the partnership, commenting, “The integration of our crypto knowledge with Betterment’s reach will expedite the platform’s growth among both retail investors and financial consultants.” Launched with a base of 20,000 clients and assets worth $1 million, Makara’s acquisition was catalyzed by the surge in crypto prices and its growing recognition during the pandemic. “The emergence of crypto as an asset class can’t be ignored,” reflected Mike Reust. “Our platform simply cannot remain void of crypto assets.”
New Horizons in Client Acquisition
The move is anticipated to attract clients eager to explore cryptocurrency investments with Betterment’s expertise. “Handling extensive and varied crypto portfolios is our aim,” Reust articulated, highlighting the firm’s comprehensive advisory model that serves various financial advisory and custodian businesses.
Guidance in the Crypto Maze
Reust criticized the lack of direction in current crypto investment choices available in the market. “How does Coinbase help you decide among different coins?” he questioned, pointing at Coinbase Global, Inc. While the exchange provides some educational resources, it falls short in offering tailored investment advice. Reust drew an analogy to a buffet, potentially overwhelming investors with choices without much guidance.
A Controlled Approach to Crypto Investments
Reust suggested that integrating Makara will refine Betterment portfolios by aiding investors to responsibly diversify into cryptocurrencies. The platform aims to steer investors away from impulsive, news-driven crypto ventures towards a more disciplined investment approach aligned with financial targets.
However, navigating the crypto world responsibly presents challenges, from regulatory to taxation uncertainties. Reust argues that Betterment’s robo-advisory service will mitigate crypto investment uncertainties by automating necessary adjustments. “As tax regulations evolve, we will handle the changes on your behalf,” he asserted. Yet, he reminded investors to remain vigilant amidst the rapid stream of cryptocurrency news.
