Two Sigma’s portfolio analytics platform Venn has forged a partnership with Coinbase Institutional to offer digital asset expertise to institutional investors.
Using the inputs, institutional investors are expected to integrate risk analysis of digital assets into their capital distribution infrastructure.
The partnership aims to offer various new services including joint research and others to empower customers of both Venn and Coinbase in particular and the institutional investment industry in general.
CoinShares data revealed that the size of institutional inflows into cryptocurrencies has increased from $6.8bn in 2020 to $9.3bn this year, a surge of 36% over a period of two years.
Last year, altogether 37 crypto-focused investment products were introduced, representing a growth from 24 in 2020. This has increased the total number of institutional crypto offerings to 132 across the globe.
Venn by Two Sigma CEO Marco Della Torre said: “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.
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By GlobalData“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.”
Venn by Two Sigma primarily enables asset owners, managers, and advisors to use factor-focused workflows for multi-asset investing.
The company plans to include additional data and functionality into its portfolio over the next few months.
In December last year, Venn by Two Sigma announced a strategic collaboration with eVestment to deliver improved investment inputs through Venn.