- Summary:
- BitGo believes that the acquisition strengthens it further, as it targets more institutional clients, especially given a likely Bitcoin ETF approval.
Leading crypto custody company BitGo, has announced its acquisition of HeightZero, a platform designed to help wealth managers advise their clients on investing in cryptocurrencies. With this acquisition, BitGo joins an elite group of digital asset companies that offer a full suite of services to wealth managers. However, the terms of the financial transaction were not disclosed.
BitGo’s target amid a likely approval of a Bitcoin ETF
As blockchain and digital assets continue to rise to the forefront of the wealth management industry, it is becoming increasingly important to meet the needs of a diverse group of asset managers and RIAs. HeightZero helps crypto asset managers with automation of portfolio management tasks like rebalancing, statement generation, tax loss harvesting, and billing.
The crypto market has endured a torrid climate since the collapse of major institutions like FTX, Genesis Capital and 3AC. Also, fewer investment options and investor concerns informed the failure of centralised asset custody institutions are preventing more capital from being allocated to cryptocurrencies. By leveraging HeightZero’s services, BitGo can better provide institutional clients with safe, long-term cryptocurrency storage.
The increasing likelihood of a Bitcoin exchange-traded fund (ETF) being approved in the United States has shifted the spotlight to traditional wealth managers and licensed investment advisors (RIAs). HeightZero’s technology platform, paired with BitGo’s experience in institutional-grade custody, may be just what asset managers need to safely and securely deliver their complete discretionary service to financial advisors in the US while they wait for the ETF approval.
BitGo says that the imminent approval of a Bitcoin ETF is a clear call to action for wealth managers and RIAs ahead of the ETF’s launch. The company adds that investors may need to move quickly in light of the anticipated rise in demand for Bitcoin that the ETF approval is likely to spark. That, of course, will depend on the SEC’s next move. However, there’s every reason to be optimistic, going by a recent court ruling which signaled the possibility of such approval in the coming weeks.