Benzinga - Crypto custody specialist BitGo announced the acquisition of a software platform, HeightZero in a strategic move amid the rising institutional interest in crypto wealth management.
What Happened: HeightZero focuses on providing wealth managers with tools to incorporate cryptocurrencies into their clients’ portfolios. Its services include portfolio rebalancing, statement generation, tax loss harvesting, and automated billing tailored specifically for crypto clients.
While completing its recently secured funding round of $100 million, BitGo said that the funds are mainly for larger plans including strategic acquisitions and to grow the business with secure and regulated custody, wallet, and infrastructure solutions, according to Blockworks.
Also Read: BitGo Secures $100M Funding Round, Valuation Hits $1.75B
Find out more on crypto wealth management services. Meet and engage with other transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event: Future of Digital Assets. Tickets are flying: Get yours!
Why Does It Matter?
BitGo’s CEO, Mike Belshe told Blockworks in an email, “When an ETF gets approved, RIAs and asset managers are going to see huge demand from their clients for bitcoin. It will be critical for asset managers and RIAs to have secure and regulated custody products available for their clients to be able to participate.”
Also Read: Citi Turns To Digital Asset Space To Improve Cash Management, Trade Finance
The potential approval of a Spot Bitcoin ETF is likely to push demand to newer heights, as digital assets and blockchain technology will take the front row in wealth management.
A survey from VettaFi and Bitwise highlights that currently, 90% of financial advisors are regularly fielding inquiries from their clients regarding digital assets while only 15% of these advisors are actively allocating cryptocurrencies in their clients’ investment portfolios.
Marc Nichols, a product director at Arbor Digital Investment Management, said that the combination of HeightZero’s technology platform and BitGo’s institutional grade custody will enable the firm to deliver its full discretionary service safely and securely to U.S. financial advisors efficiently, according to Blockworks.
Benzinga's Future of Digital Assets conference is scheduled for Nov. 14. Attend and learn more on the importance of regulated crypto custody products. The gathering is seen as pivotal for the digital assets’ community. The event will spotlight the latest trends, innovations, and challenges in the digital asset realm.
Photo: Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.