Coinbase outbid rival cryptocurrency exchange Binance to acquire crypto prime broker Tagomi in an all-stock deal. The acquisition will help Coinbase better serve institutional investors entering in the crypto space.

During a call, Goldman Sachs analysts said they do not believe bitcoin is a viable investment for their clients’ portfolios, citing its high volatility and unstable correlations to other assets as reasons for their rationale.

Australian Investment app Raiz Investments has launched a portfolio for its users with a 5% allocation to bitcoin. The portfolio was designed to give them exposure to the cryptocurrency “in a managed, risk-adjusted way.”

Sponsored: Eidoo is launching Visa debit cards available for all its EU and UK-based users that offer a crypto cashback of up to 10%. You can claim your card here.

Top stories in the Crypto Roundup today:

• Coinbase Outbids Binance to Acquire Crypto Prime Broker Tagomi
• Bitcoin Is Not a Viable Investment for Client Portfolios, Goldman Sachs Says
• Australian Investment App Launches Portfolio With Bitcoin Allocation
• Sponsored: Eidoo launching Visa debit card for real-time global payments using Bitcoin and Ether

At the time of writing, bitcoin (BTC) is trading at $9,125.41 (2.11%) with a daily Top Tier volume of $4.52 bn. As for ether (ETH), it is trading at $204.79 (0.44%) with a daily Top Tier volume of $580.40 million. The MVIS CryptoCompare Digital Assets 10 Index is currently tracking at 2,961.90 (3.41%).

Coinbase Outbids Binance to Acquire Crypto Prime Broker Tagomi

San Francisco-based cryptocurrency exchange Coinbase has announced it is acquiring crypto prime broker Tagomi in an all-stock deal. Coinbase reportedly outbid Binance to acquire the firm.

While the companies did not disclose the price of the acquisition, sources familiar with Coinbase reportedly claimed media reports suggesting a $150 million price tag overstated the value, while a source familiar with Tagomi said the price was “close to $100 million.”

Tagomi was launched in December 2018 and gained attention for the traditional finance veterans on its team. Its platform gives institutional investors and large traders additional options in the cryptocurrency space, as they no longer have to solely rely on over-the-counter desks.

On its blog post on the acquisition, Coinbase revealed it will allow it to better serve institutional investors, writing:

"It will allow us to offer custody, professional trading features, and prime brokerage services on one platform, giving sophisticated investors the seamless, powerful trading experience they have come to expect in equities and FX markets.”

Speaking to Fortune, Emilie Choi, Coinbase’s chief operating officer, added Tagomi will initially operate as a stand-alone brand, and over time will likely be integrated into Coinbase Pro.

Bitcoin Is Not a Viable Investment for Client Portfolios, Goldman Sachs Says

Goldman Sachs analysts have, during a client-facing call, made a case that cryptocurrencies like bitcoin are not a viable investment vehicle under the current economic environment.

The bank’s analysts stated in a deck shared with those in the call that cryptocurrencies are “not appropriate as an asset class” because of their volatile price movements, unstable correlations other asset classes, and other reasons. Goldman Sachs’ analysts added some may be securities:

“We believe that a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients."

During the call, analysts also noted that while some hedge funds trade bitcoin to take advantage of the high volatility, they believe “that allure does not constitute a viable investment rationale.” The event was hosted by Goldman Sachs' Investment Strategy Group, which is part of the bank’s division that caters to high net worth clients.

Australian Investment App Launches Portfolio With Bitcoin Allocation

Australian investment app Raiz Invest has launched a new portfolio for its clients, with a 5% allocation to bitcoin. In its announcement, the firm revealed the new portfolio, deemed Sapphire, was developed over the course of 18 months and is meant to give investors exposure to bitcoin “in a managed, risk-adjusted way.”

The remaining 95% of the portfolio, the seventh in Raiz Invest’s offering, will be allocated to “US, Australian, European, and Asian large-cap stocks, as well as the Australian corporate debt and money markets, all via exchange-traded funds (ETFs).”

The investment app’s CEO George Lucas commented on the offering, saying:

“Although this latest portfolio offering from Raiz is very high risk, feedback from many customers has clearly shown that they have an appetite for an investment strategy that has an exposure to cryptocurrencies, and the Sapphire portfolio has been designed with this in mind.”

Raiz Invest justified the new portfolio’s allocation to bitcoin citing a study from  U.S. stockbroker Charles Schwab that revealed that millennials prefer to invest in bitcoin than in popular blue-chip stocks, such as that of Netflix, Microsoft, or Alibaba. 

Eidoo launching Visa debit card for real-time global payments using Bitcoin and Ether

DeFi platform and smart wallet Eidoo recently launched pre-orders for its new Visa debit card offering up to 10% crypto cashback, available to all EU and UK-based users. 

The Eidoo Card brings your non-custodial crypto wallet to life. Cards provide full control over your funds, enabling you to instantly convert your BTC or ETH into €EUR or £GBP, to be spent in stores or online globally, or even withdraw from ATMs, anywhere Visa is accepted worldwide. 

Cards come in Basic, VIP and Black accounts, making crypto easily usable and accessible in day-to-day life for any level of holder. With regular “crypto cards”, users must preload their funds onto the card or use a centralized exchange, which can sometimes take days and include fees along the way.

For VIP and Black cardholders, you can level up your DeFi experience with a range of benefits and rewards. This includes subscriptions to your favourite streaming services, hotel and travel vouchers, airport lounge passes and even access to private jet programs.

In true DeFi fashion, users must burn or stake tokens to pre-order their card. Over 3 million tokens have already been staked by crypto users claiming their cards.

 Discover an account that works for you - claim your card here.

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