Robo advisor Betterment is entering the crypto space through the acquisition of Makara, a crypto portfolio-focused robo advisory firm.
A spokesperson for Makara declined to disclose the transaction amount, but as part of the deal, Makara's employees will join Betterment when it closes. The deal is expected to close later this quarter.
"We developed Makara to bring an easy and accessible long-term investing approach to cryptocurrencies. Combining our crypto expertise with Betterment's scale will accelerate the growth of the platform with both retail investors and financial advisors," Jesse Proudman, Makara's co-founder and CEO, said in a statement.
Sarah Levy, Betterment's CEO, said in a separate statement that "crypto is here to stay and Betterment wants to live our promise of long-term diversification and to provide our customers with the best variety of assets in the marketplace."
"Makara is unique in offering consumers managed crypto portfolios combined with the guidance and ease-of-use that have defined Betterment," Levy said.
In September, Betterment raised $160 million in growth capital to boost its core retail investment products and advisor services.
Other robo advisors with a crypto focus have drawn venture capital attention, including Stacked, which raised a $35 million funding round in December backed by Alameda Research, Fidelity International and Jump Capital, among others.