In spite of the bear market alarming many crypto investors in 2022, online brokerage firm M1 Finance is set to launch crypto trading accounts and trading services over the next few weeks. It will soon roll out crypto accounts and commission-free trading services for ten digital assets.
The Chicago-based company was started in 2015 and claims to have more than $5 billion worth of assets under management (AUM). The brokerage also suggests retirement accounts in addition to providing commission-free trading on stocks and exchange-traded funds (ETFs).
In a blog post on July 11 explaining the move, M1 CEO and founder Brian Barnes stated that it was primarily driven by consumer demand to support crypto assets:
“The crypto market is still young and volatile; Bitcoin emerged just 13 years ago.” he stated before adding, “Cryptocurrencies are a roughly trillion-dollar asset class that over 20% of Americans have invested in, traded, or used.”
“It has been the most requested asset addition, with roughly half of our surveyed users wanting to use M1 to invest in crypto.”
He said Adding them to the platform gives clients a choice to make this growing asset class a part of their long-term investment strategy.
The firm will primarily support ten crypto assets including Bitcoin (BTC), Ethereum (ETH), and “other large-cap liquid crypto assets.” M1 Finance stated it would increase its offerings over time and that crypto trading will be commission-free like competitors such as Robinhood.
One of M1 Finance’s key offerings is Pie-based investment, which basically allows users to create a portfolio of “Pies” in which each asset and its contact percentage is signified as a slice on a Pie graph. The service is backed by algorithmic software that can automatically balance each portion of the Pie depending on the investor’s initial investment strategy or asset distributions.
The firm also offers its own-curated and automated Pies, which provide exposure to a variety of stocks as a way to invest passively. M1 Finance has stated that Pie-investing will also be offered on the new crypto accounts.
The company blog post started, “create a crypto portfolio that fits your financial goals and risk tolerance. You can build custom crypto Pies or use Expert Pies, which are pre-built using thematic strategies such as DeFi, Web3, and large-cap crypto.”
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