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Crypto Exchange Gemini Wades Into Wealth Management With Bitria Acquisition

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Cryptocurrency exchange Gemini is acquiring Bitria, a digital asset portfolio management platform for financial advisors.

The deal gives Gemini, which caters to individual investors, greater access to the wealth management industry, and it creates what the firm bills as the first full-service digital asset custodian for advisors. 

Gemini, which offers investors access to the more than 70 cryptocurrencies, hopes to capitalize on individual investors’ demand for crypto and advisors’ constrained options to allocate a portion of clients’ portfolios to digital assets.  

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“We look a lot like the Schwab of crypto. We have the individual investor side and the ability now to serve advisors,” Dave Abner, global head of business development at Gemini, tells Barron’s. “We’re the only crypto provider with a subaccount capability. We can manage thousands of accounts for advisors. Adding Bitria’s technology, we can do portfolio rebalancing and things like that, and we can make it so much easier for financial advisors.”

Bitria’s digital turnkey asset management platform for advisors will be integrated into Gemini’s platform. Gemini says advisors will have access to that and other features such as portfolio rebalancing, tax loss harvesting, and separately managed account construction and maintenance.

“Advisors want a seamless solution to bring that to their clients. That is what Bitria and Gemini bring to the wealth management space,” Abner says.

Bitria currently serves 50 firms with about 600 accounts, according to a Gemini spokesman. 

“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,” Daniel Eyre, co-founder and CEO of Bitria, said in a statement.

The deal comes as prices for Bitcoin and other cryptocurrencies have gyrated over the past year, reaching record highs before tumbling more recently.

Bitria was founded in 2017 by Daniel Eyre, Caroline Eyre, and Daniel Rothrock. Gemini was founded in 2014 by twin brothers Cameron and Tyler Winklevoss. The company now has more than 800 employees and will be adding about 20 more via the Bitria acquisition, a spokeswoman says.

The firms did not disclose terms of the acquisition.

Write to Andrew Welsch at andrew.welsch@barrons.com