Onramp Invest debuts crypto asset management for RIAs

Onramp Invest made its official debut Tuesday, rolling out its highly anticipated cryptocurrency asset management platform for registered investment advisers to access and manage assets like Bitcoin and Ethereum for investors. 

Onramp Invest is an integration platform as a service designed to connect to an adviser's technology stack and workflow, according to the company’s website. The platform offers advisers the full breadth of cryptocurrency asset management tools including digital client onboarding, portfolio modeling, trading, custody, cash management and a library of resources to educate advisers and their clients via Onramp Academy. 

The startup emerged from beta mode that tested with 17 “VIP” advisers and will now focus on client experiences and feedback from users, said Tyrone Ross, CEO and co-founder of Onramp in an interview. 

Onramp also has eyes on more integrations, Ross said, particularly with Riskalyze and Altruist. “We have to continue those integrations because that's our moment,” he said. “And to be honest, we're going to pull more folks from our waitlist and we’re going to see how many of them are at Orion and Envestnet and say, ‘Hey come on, guys, play ball with us, we have your advisers.’” 

With more integrations comes more access to adviser data, and extracting as much data from advisers as possible is an important goal for Onramp, Ross said. That way, Onramp can address what pain points advisers are seeing with clients, like billing solutions. “That's one of the things we're working on as well, but we're not going to do billing how billing is done,” Ross said. “We're going to pull billing into the future and do it our way.”

Early investors in Onramp’s current $5 million funding round include Eterna Capital, Gemini Frontier Fund, and Ritholtz Wealth Management, Ross said.

“Our mission is to be the interstate of connectivity coordinating data flow and interoperability from the crypto-economy to traditional financial architecture,” said Ross. “Cryptoassets are here to stay. We feel compelled to empower the next generation of advisers and investors through education and access.”

The platform launches amid a volatile crypto market that has historically kept financial advisers on the sidelines. Bitcoin’s meteoric rise and subsequent downward spiral this year has undoubtedly shaken the wealth management industry. 

Still, the world’s largest cryptocurrency is the most hyped asset on the block, with prices ascending to a record high of $64,000 in April as the direct public offering of the country’s biggest crypto exchange, Coinbase Global Inc., fueled mainstream interest. In May, Bitcoin’s price plunged to $30,000. Bitcoin’s price currently clocks in around $38,000, according to Coindesk. 

Despite Bitcoin's price swings, advisers are still facing pressure to embrace cryptocurrencies as clients express increased interest in participating. Sixty-one percent of advisers have had clients approach them for information about cryptocurrency, and client demand was among the top factors motivating advisers who have already jumped into the space, according to a recent white paper by InvestmentNews Research in partnership with Grayscale Investments.

“I'll know Onramp is a success when an adviser who hates crypto is raving about it,” Ross said. “Because now they can show a client how to disrupt their financial plan, and they did that with tools that we provided. That's how you win -- haters are the greatest marketers.”

Financial advisers all over America are being asked about digital assets every day, said Josh Brown, CEO of Ritholtz Wealth Management. 

“As fiduciaries, we have to understand and quantify the role these assets play in our clients' portfolios,” Brown said in a statement. “Onramp is providing financial planners with the industry's first solution to incorporate this essential information into our services."

Onramp’s early adopters and integration partners include: Advyzon, CF Benchmarks, and Wealthbox, according to the announcement. WisdomTree Investments also announced Tuesday a partnership with Onramp Invest that introduces WisdomTree+Crypto Model Portfolios, which are intended to serve as a resource for advisers to consider as they guide their clients who may be looking to participate.

Cryptocurrency custodian Gemini also announced it has formed a strategic partnership with WisdomTree and Onramp to provide custody, clearing and execution services. 

Onramp Academy launches in partnership with Galaxy Digital’s crypto funds arm, Galaxy Fund Management, Interaxis and CoinDesk. The Academy aims to educate advisers, their clients and consumers about cryptoassets, according to the announcement.