Cryptocurrency Investing Evolves: Betterment Shifts to ETFs
In a move that signals a significant shift in the cryptocurrency investing landscape, Betterment has announced that it will be shutting down its direct cryptocurrency investing service. The decision, which was communicated to platform users via email on October 16, marks a major development in the evolution of cryptocurrency investing.
A New Era for Cryptocurrency Investing
The closure of Betterment’s direct cryptocurrency investing platform is seen as a sign of things to come, with many experts predicting that the crypto ETF space will be the primary beneficiary. “Now that ETFs are available, Betterment can replace its allocation with a far superior offering,” said Ric Edelman, founder of the Digital Assets Council of Financial Professionals.
Benefits for Investors
The shift to ETFs is expected to bring numerous benefits for investors, including lower fees and improved convenience. “Clients save money, gain improved convenience and better abilities for portfolio rebalancing, and the company gets to eliminate a cumbersome and expensive internal operations function,” Edelman added.
A Win-Win Situation
The decision to offer access to crypto ETF model portfolios is seen as a win-win situation for both investors and the company. “It’s a win-win,” Edelman said. “And those crypto enthusiasts who want to keep their positions can do so by working directly with Gemini.”
Industry Experts Weigh In
Tyrone Ross, chief executive of 401 Financial and Turnqey Labs, believes that Betterment’s decision to offer access to crypto currency models was innovative and important two years ago. However, with the Securities and Exchange Commission’s approval of Bitcoin and Ethereum ETFs, the picture has changed. “I’m a fan of holding the underlying directly, but for most investors who are not crypto savvy, the best choice is investing through an ETF,” Ross said.
The Future of Cryptocurrency Investing
As the cryptocurrency investing landscape continues to evolve, industry experts predict that more platforms will follow Betterment’s lead and offer access to crypto ETF model portfolios. “I think you’ll see a lot of platforms that were using companies like Gemini start to move over to ETFs,” Ross said.
A Boon for Crypto ETFs
The shift to ETFs is expected to be a boon for the crypto ETF space, with many experts predicting that it will become a standard portfolio allocation. “As crypto continues to evolve as standard portfolio allocations, we expect advisors to utilize crypto ETFs and crypto SMAs based on which best suits their clients’ particular needs,” said Chris King, founder of the crypto separate account platform Eaglebrook.
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