The Winklevoss twins’ Gemini cryptocurrency exchange is expanding into wealth management services, as indicated by its most recent large acquisition.
Gemini announced a deal to buy financial management firm Bitria for an unknown sum on January 13. Bitria operates a digital asset platform that provides wealth management solutions to financial advisors.
With this latest move, Gemini, which is worth $7 billion, has signaled a substantial push into wealth management services.
According to Dave Abner, Gemini’s global head of business development, “the move provides one of the industry’s first full-service digital asset custodians for advisers.”
Expansion of Institutional Products
Gemini intends to integrate its cryptocurrency exchange and custody services with Bitria’s portfolio management services. This would enable financial planners to perform more advanced operations such as tax-loss harvesting, according to Abner. Portfolio rebalancing, fee collecting and billing, account planning, and data connectivity would be among the other services offered. He went on to say:
“Advisors currently oversee the largest pool of money in the country, and they’re hearing from their clients who want access to cryptocurrency,”
Gemini’s goal is to provide investors and advisors with a one-stop shop for properly managing both traditional assets and crypto investments.
Gemini, according to Abner, is already the world’s largest service provider for crypto ETFs, and it is now “going into the wealth area,” intending to be the first to do so.
“No one else in the crypto world is looking to serve the money management community in the same manner that Gemini does,”
Gemini originally collaborated with Bitria in August 2020, when the company was known as Blockchange. Daniel Eyre, co-founder of Bitria, will join the Gemini team. According to Eyre, the future of wealth management is “in digital assets and blockchain technology.”
In late November, Gemini’s chief compliance officer Andy Meehan urged financial authorities to be open-minded in what is expected to be the year of crypto laws.
The Year of Mergers and Acquisitions
This year may see an increase in mergers and acquisitions as the world’s leading exchanges expand their businesses outside cryptocurrency trading. Coinbase announced the acquisition of FairX, a Commodity Futures Trading Commission (CFTC) authorized derivatives exchange, on January 12, as part of its intentions to sell crypto derivatives to U.S. consumers.
FTX U.S. revealed this week that it was mulling a venture into stock trading, putting the exchange in direct rivalry with Robinhood and eToro.