Another crypto firm bids for the wealth management market
BitGos latest acquisition reflects what appears to be a growing trend: increased demand for crypto-related services by the wealth management segment. The crypto company bought HeightZero, the firm said Tuesday — a platform that gives wealth managers tools to gain digital asset exposure on behalf of clients. It offers to financial advisers familiar capabilities, such as portfolio rebalancing, tax loss harvesting and automated billing. This acquisition puts BitGo in a position to offer “turnkey, compliant and secure solutions” for registered investment advisers (RIAs) and asset managers, according to Steve Scott, the companys director of institutional sales. “When an ETF gets approved, RIAs and asset managers are going to see huge demand from their clients for bitcoin,” he told Blockworks in an email. “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.” Scott declined to disclose the terms of the deal. The transaction comes in response to an apparent need by asset allocators whose interest in crypto — and that of their clients — have been tempered by various barriers. “Digital assets and blockchain technology are quickly moving to the forefront of wealth management, making it critical to provide solutions to