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According to Sarah Levy, the business is exploring “a long-term buy and hold the asset as a smaller portion of a portfolio, rather than as sort of a trading opportunity in the short term.”
Betterment, a financial advice firm located in the United States with over $30 billion under management, is considering introducing crypto investment options to its consumers.
In an interview with Yahoo Finance released today, CEO Sarah Levy said the company had been searching for ways to offer Betterment customers a means to add crypto to their portfolios given the growing interest in the digital asset space. She added that though the market was volatile, it may still offer long-term investment opportunities to those who were properly informed about the space.
“Personally, I’m a big fan of crypto and I think it’s a really interesting asset class to add into the mix,” said the CEO. “What we’re doing is really trying to figure out: Is there a way that we can offer crypto with a guided wrapper so that we can help educate along the way?”
“I think how that will manifest itself will be more through a lens of a long-term buy and hold the asset as a smaller portion of a portfolio, rather than as sort of a trading opportunity short term.”
Levy’s remarks come one month after she stated that Betterment was in a “watch-and-learn mode” when it came to selling cryptocurrency to its clients. At the time, the price of Bitcoin (BTC) and other major cryptocurrencies was much higher – the BTC price is now about 38% lower than when it was close to $60,000 in early May.
“I’d like us to find a way to responsibly offer cryptocurrency, but I can’t say we’re there yet,” the CEO stated at the time.
Betterment, which was founded in 2008, allows users to invest in stocks and bonds using its app. Despite the fact that the firm claimed a 116 percent year-over-year rise in the number of its clients in the first quarter of 2021, trading applications that allow users to deal in crypto assets have also witnessed significant growth. Robinhood claimed a 500% growth in users over the fourth quarter of 2020 at the end of March.
While Betterment considers expanding into the crypto market, Morgan Stanley has exposure through the Grayscale Bitcoin Trust. At the current price of $29.28, the business held 28,298 shares of GBTC, totalling $828,565 as of April 30. However, Goldman Sachs appears to have altered its opinion on digital assets in a study released this month, claiming that cryptocurrencies are not a “viable investment.”