Coinbase Acquires Crypto Asset Manager, Expands Institutional Access to Crypto Markets

• Coinbase recently acquired One River Digital, an asset management firm focused on cryptocurrencies.
• This acquisition will form the foundation of Coinbase Asset Management and offer investment advisory services to a range of new and existing institutional clients.
• The acquisition of One River Digital will potentially allow for greater retail investor growth as institutional whales enter the markets.

Coinbase Acquires Crypto Asset Manager One River Digital

Coinbase has made a strategic acquisition of One River Digital Asset Management in order to spur growth. One River Digital is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC) and was an early investor in Coinbase.

Formation Of Coinbase Asset Management

The acquisition of One River Digital will form Coinbase’s asset management business, offering „advisory services to a range of new and existing institutional clients.“ This marks the formation of Coinbase Asset Management which aims to provide additional institutional access to the cryptoeconomy.

Uncompromising Priority On Safety And Soundness

Coinbase stated that both companies share an ethos grounded in prudent risk management, a trait which has enabled them to successfully navigate recent market turmoil. They also shared that culturally they were strongly aligned on pursuing the opportunity in digital assets with an uncompromising priority on safety and soundness.
One River Digital, founded in 2013, will operate as an independent business and wholly-owned subsidiary of Coinbase with minimal disruption to current business activities and standard controls implemented among well-regulated and diversified financial institutions.

Impact On Coinbase Stock Price

Coinbase stock moved little on the news; COIN is currently trading at around $63, down 1% compared to yesterday according to data from Yahoo! Finance.

What It Means For Retail Investors?

The acquisition of One River Digital means that it will be able offer institutional investors better access to crypto markets which could potentially lead to increased retail investor growth as more institutional whales enter these markets.