Venn, a portfolio analytics platform powered by the $58 billion hedge fund Two Sigma, is partnering with Coinbase Institutional to help educate institutional investors on the digital asset space.
The partnership is expected to yield educational materials and joint research, webinars, whitepapers and blog posts with wealth managers, family offices, endowments and other investors in mind. Additionally, Venn is planning to roll out new analytics functionality to help allocators contextualize crypto within their asset allocation in the coming months.
While crypto markets have been challenged, Venn points to the record amount of institutional capital invested into digital assets that necessitate better data and risk analytics.
Crypto analytics within portfolio modeling and asset allocation workflows, for example, could include comparing the world’s top five crypto hedge funds to determine which are top performers, or analyzing Bitcoin against the S&P 500.
CoinShares data found that institutional inflows into cryptocurrencies have risen from $6.8 billion in 2020 to $9.3 billion in 2021, which represents a 36% jump.
“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,” said Marco Della Torre, CEO of Venn by Two Sigma, in a statement. “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.”