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Shift Crypto Holdings to ETFs

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Shift Crypto Holdings to ETFs


Bitcoin ETF - Coins

Bitcoin ETF – Coins

Robo-advisor Betterment has told investors using its direct cryptocurrency investing service that they have a month to convert those investments into ETFs.

The decision to shutter the two-year-old crypto investing platform, which New York-based Betterment announced to platform users via email on Oct. 16, is seen as a sign of things to come that will likely benefit the crypto ETF space.

“Now that the ETFs are here, Betterment can jettison all that and replace the allocation with a far superior offering,” said Ric Edelman, founder of the Digital Assets Council of Financial Professionals and a member of the etf.com advisory board.

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Citing the contrast between Bitcoin ETFs with fees as low as 12 basis points and the 1% investors are charged by the Betterment platform that was linked to Gemini, Edelman said, “It’s a win-win.”

“Clients save money, gain improved convenience and better abilities for portfolio rebalancing, and the company gets to eliminate a cumbersome and expensive internal operations function,” he said. “And those crypto bros who want to keep their positions can do so by working directly with Gemini.”

Betterment Nods Toward Crypto ETFs

Betterment declined to comment for this story, but a spokesperson did confirm the accuracy of a report by RiaBiz.com.

The story didn’t say that Betterment had recommended a particular crypto fund for clients.

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Tyrone Ross, chief executive of 401 Financial and Turnqey Labs, said Betterment’s decision to offer access to crypto currency models was innovative and important two years ago, but since the Securities and Exchange Commission this year approved Bitcoin and Ethereum ETFs, that picture has changed.

“I’m a fan of holding the underlying directly, but for most investors who are not crypto savvy, the best choice is investing through an ETF,” said Ross, who added that he would never advise a sophisticated crypto investor to use a crypto ETF.

“I abhor everything about the crypto ETFs,” he said. “There’s the fees, the fact there is no direct ownership, it doesn’t solve a lot of the issue advisors still have in the crypto space, and it’s just a money grab by ETF issuers.”

That said, Ross expects to see more platforms go the Betterment route of offering access to crypto ETF model portfolios, which he sees as a boon for those ETFs.

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“I think you’ll see a lot of platforms that were using companies like Gemini start to move over to ETFs,” he said.

Edelman sees a similar evolution.

“Betterment is not just helping its clients and itself, it’s showing all advisory firms how easy this is to do,” he added. “There’s truly no reason anymore for RIAs not to offer bitcoin and Ethereum to their clients.”

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Meanwhile, Chris King, founder of the crypto separate account platform Eaglebrook, sees a future where crypto ETFs and direct ownership in crypto become strategies that advisors turn to when customizing client portfolios.

“As crypto continues to evolve as standard portfolio allocations, we expect advisors to utilize crypto ETFs and crypto SMAs based on which best suits their clients’ particular needs,” he said.

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Do millionaires keep their money in checking accounts?

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Do millionaires keep their money in checking accounts?


The habits of millionaires are a topic of interest when it comes to financial advice. After all, unless they received a large chunk of money as an inheritance or gift, most millionaires had to be smart with their money to get where they are.

Learning how millionaires accumulate wealth — and where they keep it — can provide valuable insights for anyone focused on growing their money. One common question is whether or not millionaires keep money in checking accounts.

Studies show that in recent years, millionaires are keeping a significant portion of their wealth in cash. According to CNBC’s , that portion was about 24% in 2023. While this doesn’t necessarily mean a quarter of a millionaire’s wealth is sitting in a checking account, it does indicate the importance of maintaining liquid assets. And a checking account can be a helpful tool for doing so — whether or not you’re a millionaire.

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Anyone, regardless of net worth, can find value in a checking account. Checking accounts allow unlimited deposits and withdrawals, check writing, bill pay, and other features to help you manage your money day-to-day.

While millionaires may keep large portions of their wealth in other deposit accounts and investments, some may use a checking account to manage daily spending. Millionaires also recognize the importance of having liquid assets, like funds in checking and savings accounts. Accessible cash lets you cover unexpected expenses without needing to sell off investments, borrow money, or pay a penalty for tapping your retirement savings early.

The amount of money a millionaire keeps in their checking account is highly personal and depends on preference. However, because checking accounts rarely earn competitive — if any — interest, some millionaires intentionally limit their checking account balance. Some may choose to keep the bare minimum, such as a couple of months’ worth of essential expenses, in their checking accounts, keeping the rest of their wealth in more lucrative assets.

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Regardless of preference, it would be surprising for a millionaire to keep more than $250,000 in a single checking account. That’s because the Federal Deposit Insurance Corp. (FDIC) only insures up to $250,000 in deposits per institution, per account holder.

While millionaires may use checking accounts for day-to-day financial transactions, they may also use some of the following accounts in addition to, or in place of, a checking account:

  • Savings accounts: Like checking accounts, savings accounts provide a high degree of liquidity, allowing you to access your money as needed for regular or unexpected expenses. High-yield savings accounts, in particular, give millionaires an extra bang for their buck. Some of the best accounts currently offer rates upwards of 4% versus the national average savings account rate of 0.46%.

  • Cash management accounts: Cash management accounts (CMAs) pay competitive interest rates while maintaining more accessibility than a savings account. Some CMAs come with a debit card and ATM access, and many provide extended FDIC coverage limits by “sweeping” additional deposits into partner banks. CMAs are available at brokerages, not banks, facilitating easy transfers between investment and cash accounts.

  • Money market accounts: Similar to CMAs, money market accounts combine features of checking and savings accounts, often paying competitive interest rates and providing check writing and ATM access. Banks and credit unions offer these accounts, which are federally insured. Minimum opening deposit and minimum balance requirements are often higher than those for standard savings accounts.

  • Retirement and tax-advantaged accounts: Millionaires understand the importance of investing for their later years, and retirement accounts such as 401(k)s and IRAs allow them to do so in a tax-advantaged way. Some retirement accounts, like 401(k)s, are offered by certain employers. Others, such as traditional and Roth IRAs, are available to anyone.

  • Brokerage accounts: The IRS limits contributions to tax-advantaged accounts, and millionaires typically invest beyond these limits. They do so with taxable brokerage accounts, which can hold investments such as stocks, bonds, and mutual funds without contribution limits.

  • Other investments, like real estate, commodities, and art: Some millionaires may decide to diversify their portfolio with other investment types. These could include real estate investments, such as investment properties or real estate investment trusts (REITs); commodities, such as metals or energy products; art; and more.

The amount of money millionaires keep in their checking accounts depends on personal preference. While some millionaires may keep six figures in their checking account to maintain a comfortable cash cushion, others may choose to keep the bare minimum in checking. You wouldn’t expect millionaires to keep more than $250,000 in a checking account, however, because balances over this threshold aren’t typically insured.

There’s no single bank that’s a favorite among millionaires; it’s another matter of preference. However, millionaires are likely to bank with institutions that offer private banking to those who meet specific financial requirements. Private banking may include wealth planning services, waived fees, dedicated bankers, and additional perks. J.P. Morgan Private Bank, Citi Private Bank, and Bank of America Private Bank are among some of the most popular banks for millionaires.

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Billionaires may have checking accounts, but they likely use accounts that cater to ultra-high-net-worth individuals. These accounts may come with perks such as a dedicated banker, waived fees, and competitive interest rates. Alternatively, billionaires may opt for a cash management account with higher FDIC insurance coverage limits and checking account features.

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No rule says you can’t have a million dollars in a checking account, but FDIC insurance typically only covers up to $250,000. Plus, you can get a bigger return on your investment by keeping $1 million elsewhere. One alternative is a cash management account, which acts like a checking account but generally earns higher interest. Plus, many cash management accounts insure more than the standard $250,000 by sweeping funds into multiple partner banks.

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Lumen And Meta Join Forces To Boost AI With Flexible, On-Demand Network Solutions

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Lumen And Meta Join Forces To Boost AI With Flexible, On-Demand Network Solutions


Lumen And Meta Join Forces To Boost AI With Flexible, On-Demand Network Solutions

Lumen And Meta Join Forces To Boost AI With Flexible, On-Demand Network Solutions

Lumen Technologies, Inc. (NYSE:LUMN) shares are trading higher on Monday after the company announced it is partnering with Meta Platforms, Inc. (NASDAQ:META) to significantly increase Meta’s network capacity and help drive its AI ambitions.

Lumen’s partnership offers Meta enhanced flexibility with secure, on-demand bandwidth, supporting its complex computing requirements and enabling it to serve billions daily.

Ashley Haynes-Gaspar, Lumen’s EVP and chief revenue officer, said, “We’ve transformed our company to meet this demand. As Meta’s customers use more AI services across its platforms, we’re helping provide Meta with a seamless, effortless, and flexible network that will meet its growing needs.”

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Lumen Technologies said its Private Connectivity Fabric enables long-term network capacity for Meta’s AI.

Alex-Handrah Aimé, director of Meta’s Network Investments stated, “Our AI tools are performing increasingly more complex tasks including enabling conversations in a variety of languages and translating text to images in real time, while helping people interact with the world around them in new, immersive ways.”

Read: Chinese Hackers Breach AT&T, Verizon Networks In Major Wiretap Data Theft Putting US National Security At Risk: Report

Lumen will report third quarter 2024 results on November 5, 2024.

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Investors can gain exposure to the stock via Invesco S&P SmallCap Utilities & Communication Services ETF (NASDAQ:PSCU) and First Trust Cloud Computing ETF (NASDAQ:SKYY).

Price Action: LUMN shares are up 9.50% at $7.38 at the last check Monday.

Image via Shutterstock

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This article Lumen And Meta Join Forces To Boost AI With Flexible, On-Demand Network Solutions originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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US election optimism fuels $2.2B inflows in crypto products

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US election optimism fuels $2.2B inflows in crypto products


CoinShares said the United States and Bitcoin led crypto investment product dynamics last week amid growing optimism over a potential Republican election win in the US.



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Quantum computer ‘threat’ to crypto is exaggerated — for now

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Quantum computer ‘threat’ to crypto is exaggerated — for now


Bitcoin’s private keys won’t be breached any time soon, but the industry still needs to transition to “post-quantum cryptography.” 



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European investors pour record $105B into US Bitcoin ETFs

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European investors pour record $105B into US Bitcoin ETFs


Despite record European inflows, Bitcoin has been unable to recover above the $70,000 psychological level since July.



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ApeCoin (APE) price jumps 100% on ApeChain launch

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ApeCoin (APE) price jumps 100% on ApeChain launch


Apechain mainnet launch and LayerZero’s integration translated to 100% price upside for APE in recent days.



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