Blockchain.com Launches Asset Management for Wealthy Customers

Key Insights:

• Crypto exchange Blockchain.com launches asset management for institutional investors.
• The firm created the service in partnership with the investment firm Altis Partners.
• It is based on a strategy that tracks the price of Bitcoin versus the USD.

Blockchain.com, which is now a decacorn after raising a Series D funding, has launched an asset-management brand dubbed ‘BCAM.’

Targets Wealthy Customers

Launched Wednesday, the new service will serve high-net-worth customers, institutional investors, and family offices, a Bloomberg report said.

The London-based crypto firm that provides various services, including trading and custody, has partnered with a macro investment manager Altis Partners, for the launch.

The asset management brand will work on strategies that will:

• Track the price of Bitcoin versus the U.S. dollar.
• Offer Bitcoin Smart Beta, an “algorithm-based risk-managed exposure” to reduce the volatility while investing in Bitcoin.

The company noted in its blog post, 

“BCAM provides robust risk management and client services to crypto-assets, integrating them into sophisticated investment strategies.”

Additionally, BCAM will also launch a product that manages exposure to decentralized finance (DeFi) coins such as Decentraland (MANA), Uniswap, and Aave, to name a few.

According to Charlie McGarraugh, chief strategy officer at Blockchain.com, the DeFi coins tied to the application will let users trade, lend and borrow without intermediaries. He said,

“Blockchain.com is doubling down on its institutional business with the launch of the new service… It’s a big opportunity.”

Institutional Demand for Active Crypto Fund Increases

With the rising institutional demand for more actively managed digital asset investments, BCAM combines the traditional financial markets with the new world of crypto to meet the demand, said McGarraugh. He added,

“The advent of distributed ledger technologies and crypto-assets has the potential to change the structure of global capital markets while presenting new opportunities for investors.”

Recently, Abra, a crypto-focused wealth management platform, launched its asset management arm, Abra Capital Management. The service allows clients to access five actively managed funds with exposure to various digital assets, including Ethereum and stablecoins such as Tether.