Gemini Wants TradFi RIAs to Buy Crypto via Envestnet Partnership
Gemini has moved to offer crypto accounts to RIAs on Envestnet’s Tamarac platform, which together manage some $1.3 trillion in assets
Tyler and Cameron Winklevoss, Gemini Trust Co. Source: Gemini Trust Co.
key takeaways
- Gemini acquired digital asset portfolio management platform BITRIA in January in effort to improve crypto access to asset managers
- Franklin Templeton, Ark Invest and Valkyrie Investments have targeted the advisor community with recent crypto SMA launches
Gemini is joining the push to offer crypto to traditional finance (TradFi) advisors, with the Winklevoss-owned firm expanding its reach via a new partnership.
The exchange’s latest bid to integrate with one of the largest distribution platforms for financial pros mirrors others across both finance and crypto industries. Multiple companies, including Valkyrie and Ark Invest, are now seeking to bring exposure to the asset class to a broader range of investors.
By teaming up with Envestnet’s Tamarac platform, Gemini will effectively offer a direct custodial feed for crypto managed accounts to an enormous chunk of the TradFi sector, comprised of more than 3,000 registered investment advisors (RIAs) overseeing more than $1.3 trillion in assets.
“Tools delivering transparency into clients’ crypto holdings are essential for empowering advisors to provide advice that is truly holistic,” Dani Fava, Envestnet’s president of product innovation, said in a statement. “The integration between Gemini BITRIA and the Envestnet Tamarac platform provides a unified view of client portfolios across all asset classes.”
The move comes after Gemini acquired digital asset portfolio management platform BITRIA in January to make available to wealth managers features such as SMA construction and portfolio rebalancing.
The company revealed the buy of trading technology platform Omniex less than a week later in an effort to simplify the experience for institutional investors looking to go deeper into crypto.
More recently, Gemini struck a deal with quantitative financial adviser Betterment to offer crypto portfolios to its 730,000 customers.
Dan Eyre, head of Gemini BITRIA, told Blockworks that Tamarac is an ideal partner as Gemini looks to broaden the reach of its BITRIA offering.
“The millions of investors who prefer to work with an adviser when making investment decisions will now be able to engage with the Gemini ecosystem to gain access to crypto through these offerings,” Eyre said.
Gemini joins push to bring crypto to TradFi
Gemini’s integration with the Tamarac platform continues a trend of crypto firms making moves to target financial advisors in recent weeks.
Franklin Templeton revealed last month that it was prepping its first crypto-focused separately managed accounts (SMAs), while Ark Invest followed suit to offer similar products earlier this week.
Both firms partnered with digital asset SMA platform Eaglebrook Advisors to bring the strategies to RIA clients.
Valkyrie Investments also unveiled crypto SMAs this week. John Key, the firm’s head of distribution said he believes pensions, endowments and corporations are likely to pivot to these types of products once the markets stabilize.
SMAs differ from exchange-traded funds (ETFs) and other similar products in that they allow ownership of the underlying assets, unlike ETFs, which only offer shares in the fund itself.
Eaglebrook Advisors CEO Christopher King previously called the US wealth management market the “lowest-hanging fruit” for the crypto industry.
Though only 14% of surveyed advisers were using or recommending cryptocurrencies, according to a March Cerulli Associates report, 45% expect they will be using crypto in the future due to client requests.
“We see these developments as a natural progression as the crypto asset class matures,” Eyre said.
“The evolution to providing an all-in-one offering that fits the needs of institutions and advisers took time to develop…and we’re excited about our ability to offer a full suite of products that fit the needs of these audiences.”
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