Key Highlights:
- Stacked, a web-based platform that offers passive investing tools to retail investors interested in cryptocurrency has announced a $35 million Series A round.
- According to the firm, Stacked has automated over $10 billion in transactions for tens of thousands of new investors in 2021.
- According to Birch, Stacked generates money by collecting a 5% charge on transactions in its two-sided open marketplace.
Stacked raises $35 million
Stacked, a web-based platform that offers passive investing tools to retail investors interested in cryptocurrency has announced a $35 million Series A round co-led by Alameda Research, a crypto trading business controlled by FTX founder Sam Bankman-Fried.
Along with Alameda, Bybit and BitDAO partner Mirana Ventures co-led the investment. Fidelity International Strategic Ventures, DRW Venture Capital, Alumni Ventures, and Jump Capital were among those that took part.
In September 2020, the Chicago-based startup, which debuted in April 2020, secured a $1 million seed investment. The current investment increases the company’s overall funding to “just shy of $40 million,” according to co-founder and CEO Joel Birch in an interview.
Investment to evolve the platform
It intends to utilize the capital to more than quadruple its 40-person workforce in the next six to eight months, as well as to spend on user acquisition, expansion, and marketing. Stacked has expanded its business with no official marketing budget before this investment, he continued.
According to the firm, Stacked has automated over $10 billion in transactions for tens of thousands of new investors in 2021. It also obtained registration as a registered investment advisor (RIA) with the US Securities and Exchange Commission (SEC) this summer in order to expand its product offerings, according to the business.
“In the very near future, we’re going to continue to evolve our platform away from automating strategies and providing people with this simple investment platform and toward actually offering structured products like risk-adjusted portfolios and giving curated investment advice to individuals based on their risk tolerance,” Birch said.
Curated investment advice
While the SEC has yet to authorize a crypto ETF for trading in the United States, products like Grayscale’s trusts have grown in popularity among investors seeking price exposure to the asset class. Stacked’s offering, according to Birch, differentiates from similar solutions in that it is open to all retail investors, regardless of accreditation, and lets users keep custody of their digital assets.
Stacked, which serves as a layer on top of a user’s current crypto brokerage account, provides a variety of pre-built portfolios called “stacks” based on a risk score assigned to each user following a suitability evaluation. According to Birch, it works with “a few of the most recognized exchanges in the world,” including Coinbase, FTX, and Binance.
According to Birch, Stacked generates money by collecting a 5% charge on transactions in its two-sided open marketplace, which provides automated trading techniques. Investors utilize the exchange to purchase methods created by well-known traders and crypto influencers.
Also Read: Top Places to Go to Find Safe Bitcoin Exchange and Storage
