Two Sigma’s Venn, Coinbase to Provide Digital Asset Intelligence

Marco Della Torre

There has been a surge in demand for tools, analytics, insights and institutional-grade information from trusted firms to help investors who are considering the role of digital assets in multi-asset portfolios, according to Marco Della Torre, CEO of Venn by Two Sigma.

On Wednesday, August 17, Venn, Two Sigma’s portfolio analytics platform, announced that it is joining forces with Coinbase Institutional to help educate institutional investors on the digital asset space.

Wealth managers, endowments, family offices, pensions, insurers, and other professional investors that use Venn by Two Sigma are receiving questions from internal and external stakeholders about crypto, said Della Torre. 

“We want to be in a position to help them develop a strategy and framework for the asset class,” he told Traders Magazine.

Della Torre said that recent trends in institutional adoption of crypto highlight the growing need for multi-asset portfolio and risk analytics. 

Venn in particular remains focused on helping asset owners, managers, and advisors apply factor analysis and returns-based workflows to multi-asset investing, said Della Torre. 

“We aim to empower allocators with key information, insights, and tools needed to make decisions with confidence,” he said.

The new initiative aims to empower institutional investors with the insights needed to incorporate risk analysis of digital assets into their capital allocation frameworks.

“Our focus is on helping asset owners and managers who are just beginning to dive into the world of digital assets find answers to their questions and easily perform the kind of manager and portfolio analysis they would with any other asset class,” Della Torre said. 

“Importantly, we want to serve as a resource, and provide institutional-grade analytics tools, to help investors generate informed and rigorous conclusions about digital assets,” he said.

“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,” added Anthony Bassili, Head of Asset Allocators for Coinbase Institutional.

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 $6.8bn in 2020 to $9.3bn in 2021, a 36% increase, according to 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.  

“We are approaching this new asset class from a point of neutrality. Our sole focus is on helping our clients make their own determinations about what to invest in and why,” Della Torre said. 

Educational resources will be made available on the Venn blog and disseminated via the Venn Digital Assets Newsletter.

The joint initiative will start with a webcast Putting Crypto Into Context – Tools & Frameworks for Asset Allocators to Evaluate Digital Assets on Wednesday, September 14, 2022. 

The webcast will explore how to build a risk and allocation framework to analyze digital assets as part of an institutional portfolio. 

“Following the webcast, we plan to co-produce other content to help Venn and Coinbase clients and the institutional investment community at large better understand the space,” Della Torre commented.