According to CoinDesk, cryptocurrency custody specialist BitGo has acquired HeightZero, a company that provides software tools for wealth managers whose clients may want to invest a portion of their portfolios in crypto and digital assets. The financial details of the deal were not disclosed.
Cryptocurrency has a reputation for fast-paced, speculative, and complex trading strategies. Many institutional players and some original crypto firms are looking to offer secure long-term holdings with a focus on mainstream wealth managers and regulated investment advisors (RIAs).
BitGo CEO Mike Belshe believes that the likely imminent approval of a spot bitcoin (BTC) ETF should be a wake-up call to wealth managers and RIAs. He suggests that RIAs should be contacting BitGo and using HeightZero's services to get qualified custody before the ETF is approved, as there will be massive demand for bitcoin when it happens.
HeightZero handles portfolio rebalancing, statement generation, tax loss harvesting, and automated billing for crypto clients. The firm had been using BitGo custody for some time before joining the larger company. BitGo recently raised $100 million and is known to be on the acquisition trail, with HeightZero being a strategic example of their expansion plans.
