A cryptocurrency trading firm has acquired a digital portfolio management platform to give advisors access to an end-to-end cryptocurrency investing program, the two firms involved announced today.
Gemini, a platform that allows customers to buy, sell, store and earn cryptocurrencies like bitcoin, ether and DeFi tokens, has acquired BITRIA, a digital asset portfolio management platform. Through the deal, BITRIA, formerly known as Blockchange, will add its technology to Gemini’s custody and exchange capabilities. Through Gemini, advisors will have access to the entire crypto ecosystem and will have the ability to manage their clients’ portfolios from one interface, the firms said.
BITRIA's Digital Asset Separately Managed Account and Digital Turnkey Asset Management Platform will give advisors access to the more than 70 cryptocurrencies available on Gemini’s exchange. The combined firms also will provide wealth managers features such as separately managed account construction and maintenance, portfolio rebalancing, tax loss harvesting, fee collection and billing, account planning and data connectivity, Gemini said.
"The BITRIA acquisition positions Gemini as the first end-to-end technology platform empowering wealth and asset managers to meet rising demand among their clients for accessing and managing a full range of crypto investments," Dave Abner, global head of business development at Gemini, said in a statement. “Many advisors currently have limited access to just one or two tokens through closed-end funds and spot crypto ETFs in jurisdictions where they are available.” This acquisition broadens the management possibilities for wealth advisors.
Last June, a Financial Planning Association and Journal of Financial Planning survey found that 49% of advisors said clients have asked about cryptocurrencies in the past six months, up from 17% in 2020, Gemini said. “With $20 billion in AUM within advised accounts in the U.S., this rising demand represents a potential transfer of billions in wealth into digital assets in the coming years,” the firm said.
Gemini and BITRIA initially announced a partnership in August 2020 and current customers of both firms will be integrated into Gemini’s platform. BITRIA's team will join Gemini.