Fintech startup Titan launches active crypto management for U.S. retail investors

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Count the retail investment platform Titan as the latest financier to roll out a crypto offering. The Turn: Titan is touting the strategy as the first actively managed strategy in the United States aimed specifically at retail investors.

The crypto investment strategy is expected to launch today, Titan co-founder and co-CEO Clayton Gardner told Crypto Investor.

The platform offers actively managed crypto strategies with a minimum investment of just $ 100, which Gardner says is a first for the retail investment space.

“We strongly believe that Bitcoin is just the tip of the iceberg,” Gardner said, alluding to other “blue chip” cryptocurrencies, including Ethereum, in which Titan plans to invest on behalf of a growing number of retail investors. Indeed, Cardano is expected to be the third biggest asset for Titan’s strategy at launch.

The move is a diversification away from the core US equity offerings of New York-based Titan, with international equities being another relatively recent addition. The portfolio rebalancing is expected to occur quarterly at launch, with Gardner saying the team may consider monthly readjustments later. There is also the possibility of seizing the harvest of tax losses in portfolio shuffles.

Titan, which was recently valued at $ 450 million in a Series B round led by a16z, currently has a dedicated crypto analyst. The idea is to add staff to support the effort as the startup, which now has 30 employees, is hiring later in the year. It could also open the door for Titan to invest in a “long tail” of decentralized financing strategies, Gardner said.

“The philosophy behind it is long term, so don’t try to day-trade or trade around certain events … but really focuses on understanding the usefulness of a given protocol. and the confidence that surrounds it, ”Gardner said.

Titan charges a fee of $ 5 per month for managing accounts under $ 10,000. For clients with more than $ 10,000 in net deposits, Titan charges a management fee of 1%, calculated on an annual basis.

Gardner said the company will recommend crypto holdings for clients up to 5% of their overall portfolio with Titan. The amount in question depends on the risk profile of the user.

Titan now manages over $ 600 million in total and plans to roughly double the size of its staff by the end of the year, which would translate into a team of around 60. Gardner said the Equity assets are expected to cross the billion dollar mark later this year.

The company is now in the process of vetting and integrating middle and back office specialists to support the new crypto game. Something else of interest on the horizon: possible crypto lending options.

Gardner said a downstream consideration for Titan would be to become a broker – or offer an affiliate broker – that issues crypto-backed trust loans.

“Investing is the first step,” he said. “Once you have that wallet, what do you do with it?” “

Count the retail investment platform Titan as the latest financier to roll out a crypto offering. The Turn: Titan is touting the strategy as the first actively managed strategy in the United States aimed specifically at retail investors. Subscribe for the full article

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