Public Takes a Big Step Into Crypto with Alto Acquisition

Public, a popular investing app, has made a significant move into the world of cryptocurrency. They recently bought Alto's crypto business for a hefty $65 million in cash and stock. This deal gives Public access to about $600 million in assets under management, making it the first investing app to offer a full range of crypto assets in retirement accounts. Alto is known for providing a wide variety of crypto assets, unlike Fidelity, which only offers Bitcoin in its crypto retirement accounts. This acquisition is part of Public's broader strategy to attract older, more experienced investors who are interested in a diverse range of investment products. The median age of Public's customers is 38, which is older than Robinhood's typical user base. The integration of Alto's crypto accounts into Public's platform is expected to be completed by 2026. Alto will continue to operate independently, focusing on other investment areas like private credit and venture capital. This move comes at a time when the regulatory environment for crypto retirement accounts is still uncertain. While there have been discussions about expanding the range of assets available in 401(k) accounts, the necessary regulations have not yet been implemented. Public's decision to dive deeper into crypto IRAs is a bold one. It shows their confidence in the long-term potential of cryptocurrency. However, it also comes with risks, as the regulatory landscape is still evolving. Investors who are bullish on crypto see IRAs as an attractive option because they allow for long-term investment without immediate tax consequences.