A simple way to invest in Bitcoin and Ethereum
Since cryptocurrencies were first released in 2009, Bitcoin and Ethereum have established themselves as the largest digital assets.
What to know: At Betterment, we’ve made it easy for you to invest directly in the most well-known and adopted digital assets through our Bitcoin/Ethereum portfolio.
A simple, balanced approach to crypto: Our Bitcoin (BTC) and Ethereum (ETH) portfolio simplifies investing in the largest, most liquid digital assets.
- Together, BTC and ETH can make up about 60% to 70% of the crypto market capitalization depending on the market conditions.
- The portfolio has target weights of 70% BTC and 30% ETH relative to each coin's market capitalization.
- Once your account has reached the balance threshold, we automatically rebalance the portfolio for you to maintain as close as possible to the 70/30 split.
Fast facts: The price of Bitcoin and Ethereum are considered indicators of the overall health of the crypto markets but there are key differences between the two assets.
- Bitcoin, launched in 2009, and Ethereum, launched in 2015, are both digital currencies and decentralized blockchains (a distributed peer-to-peer database).
- The Bitcoin blockchain records BTC transactions, with the original goal of BTC being a medium of exchange and a store of value outside the control of individuals, banks, or institutions.
- The Ethereum blockchain is used to record ETH transactions but its distinguishing feature is ‘smart contracts’ used across industries including finance, e-commerce, and real estate.
Generally, there are two other ways to invest in BTC and ETH:
- Investors can manually select BTC and ETH on crypto exchanges but have to take care of monitoring the market and rebalancing their investments in a crypto wallet.
- Exchange-traded products including ETFs and trusts provide investors with easy exposure to BTC and ETH but the price of the investment doesn’t always track the price of the digital asset, plus these investments don’t provide true ownership of the underlying cryptocurrency.
Both of these approaches are considerably different than ours. The Betterment Bitcoin/Ethereum portfolio is designed to give you ownership of both BTC and ETH while we rebalance the portfolio for you as the market changes.