A fintech startup which directs the cash of investors into peer-to-peer loans with the use of an algorithm is examining a move into cryptocurrencies.
The growth in bitcoin has driven InvestUp to consider offering the option as the demand from investors is rising.
The robo-investor platform is studying to launch a new feature that will enable investors to allocate their cash to a selection of both cryptocurrencies and loans, with separate algorithms overseeing both.
The startup was originally established in London and is now based in Leeds. It is planning to analyse over 1,000 cryptocurrencies and is expecting to include between 10 percent and 35 percent of them, which will be evaluated according to its risk. The algorithm will then distinguish the best investments for a portfolio of a user and automatically adjust them in order to maximise the return.
InvestUp said that it would work with the financial watchdog to test it and is possible to apply for the Financial Conduct Authority (FCA) regulatory “sandbox”, in which fintechs can test under regulatory supervision without the fear of falling foul of the law.
The astonishing (if volatile) rise of Bitcoin has continued as it heads towards the mainstream, along with other cryptocurrencies including ethereum and ripple, and new financial services and products are springing up to sate appetites.
Late last year, high profile bitcoin futures were launched. On the other hand, spreadbetter IG Group added Ripple and Litecoin trading last week, bringing the total number of cryptocurrencies that the company offers traders to six.