Crypto exchange Gemini pushes into wealth management with acquisition of BITRIA

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Gemini, a $7.1 billion crypto exchange, is getting into wealth management with the acquisition of a digital assets platform for financial advisors, CNBC has learned exclusively.

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The company has agreed to buy daughterAccording to Dave Abner, global head of business development for Gemini, a five-year-old San Francisco-based start-up whose tools help advisors manage the holdings of bitcoin and other tokens.

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The move created one of the industry’s first full-service digital asset custodians for advisors, according to Abner, who declined to disclose how much Gemini paid in the deal. Gemini wants to combine its crypto custody and exchange capabilities with BITRIA’s portfolio management programs, allowing advisors to do things like tax-loss harvesting, he said.

“Consultants manage the largest pool of funds in the country right now, and they are hearing from their clients who want access to crypto,” Abner said in a phone interview this week. “It creates a one-stop, end-to-end experience for advisors to manage the digital assets of all their clients within their traditional portfolio management systems.”

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Crypto insiders anticipate a boom in mergers this year as a slew of newly flush digital asset giants such as Gemini and Coinbase seek to acquire capabilities and expand offerings. just yesterday, coinbase announced It was buying Chicago-based FairX so that it could offer derivatives to retail and institutional clients.

Although CryptoKitties began as a retail investor-led phenomenon more than a decade ago, the rise of bitcoin, ethereum and other coins over the past two years has attracted large investors to the sector. This has created a need for ways to give wealthy investors access to crypto through familiar money management vehicles such as segregated managed accounts.

“No one else in the cryptocurrency space is looking to serve the wealth management community quite like Gemini,” Abner said. “We are already the largest service provider for crypto ETFs globally. We are now moving into the wealth sector, and we are going to be the only pure-play full service provider of crypto assets to advisors”.

daughter, who changed its name Off Blockchain in November, is one of a handful of crypto companies that have sprung up to serve as financial advisors. Contestants include onramp invest And Eaglebrook Advisor, With rapidly growing equity markets, the wealth of the broader financial advisory industry has increased, Topping $110 Trillion during the pandemic.

Gemini, founded in 2014 by the Winklevoss twins Tyler and Cameron, was rated $7.1 billion in the November funding round. Balloon valuations in the industry have left companies with cash and a mandate to accelerate growth.

After acquisition a Partnerships Between the two firms announced in 2020. BITRIA employees, including co-founder and CEO Daniel Eyre, are joining Gemini, the companies said.

“The future of wealth management lies in digital assets and blockchain technology, and the integration of BITRIA’s technology with Gemini provides a bridge to that future,” Ayre said in a statement.

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