Venn, Two Sigma’s portfolio analytics platform, announced a collaboration with Coinbase Institutional to help educate institutional investors on the digital asset space. The initiative aims to empower institutional investors with the insights needed to incorporate risk analysis of digital assets into their capital allocation frameworks.
These efforts will launch with a joint webcast Putting Crypto Into Context – Tools & Frameworks for Asset Allocators to Evaluate Digital Assets on Wednesday, September 14th 2022. The webcast will explore how to build a risk and allocation framework to analyze digital assets as part of an institutional portfolio. Open registration is available here.
Additional upcoming informational resources will include joint research and thought leadership designed to help Venn and Coinbase clients and the institutional investment community at large.
This collaboration comes amid both volatility and a record amount of institutional capital invested in the asset class, highlighting the need for multi-asset portfolio and risk analytics. Institutional inflows into cryptocurrencies have risen from $6.8 billion in 2020 to $9.3 billion in 2022, marking a 36% jump in the 2-year period, per data from CoinShares. Additionally, 37 crypto-linked investment products were launched in 2021, up from 24 in 2020 – driving the total number of institutional crypto products to 132 globally.
“While crypto presents new opportunities in portfolio construction for institutional investors, those same investors are seeking support from leading firms to better understand the space. We’re teaming up with Coinbase to help capital allocators and portfolio managers bring crypto into context and to support their need for insights around multi-asset-class analytics. We believe Venn can help these investors integrate digital assets into their existing capital allocation frameworks, seamlessly and with the rigor their role demands,” explains Marco Della Torre, CEO of Venn by Two Sigma.
“We view institutional investors as critical to achieving our mission of increasing economic freedom in the world, and we take seriously our commitment to being a trusted bridge to the cryptoeconomy for them,” said Anthony Bassili, Head of Asset Allocators for Coinbase Institutional. “As institutional adoption of crypto continues to grow, we are committed to creating new points of access and look forward to working with Venn by Two Sigma to further our shared goal of driving greater understanding of, and access to, digital assets.”
Venn by Two Sigma helps asset owners, managers, and advisors apply powerful, factor-based workflows to multi-asset investing. Venn will add new data and functionality to the platform over the coming months that will empower allocators with exceptional tools to contextualize crypto within portfolio modeling and asset allocation workflows.