Expanding Crypto Retirement Options
Public just made a significant move in the crypto retirement space, paying $65 million in cash and stock to acquire Alto’s CryptoIRA business. I think this represents a pretty substantial commitment to expanding Bitcoin and cryptocurrency options for retirement investors. The deal means Alto clients will continue using their platform until early 2026, when Public expects to complete full integration.
What’s interesting here is the timing. Public launched back in 2019 and has grown to serve over one million users trading various digital assets, including bonds, mutual funds, and ETFs. Now they’re adding crypto IRAs to their offerings, which honestly makes sense given the growing demand for tax-advantaged cryptocurrency investing.
The Tax Advantage Question
CryptoIRAs essentially let investors trade cryptocurrencies without dealing with the immediate tax implications that come with every sale in regular taxable accounts. That’s the main appeal, I suppose. But I wonder how many people actually understand the long-term tax benefits versus just wanting to trade crypto in their retirement accounts.
Public’s co-CEO Leif Abraham mentioned this acquisition makes them one of the few platforms where customers can trade crypto in their IRAs. He’s probably right about that, though the competition is definitely heating up.
Facing Established Competition
Public isn’t entering an empty field here. Fidelity, one of the giants in the investment space, introduced their own line of IRAs with direct cryptocurrency investments back in April. Fidelity’s offering includes Roth, traditional, and rollover IRAs with no account opening or maintenance fees, though they do charge a 1% spread on crypto transactions.
That’s some pretty serious competition. Fidelity has the brand recognition and trust that Public is still building. Their custody services, where most cryptocurrency is stored in offline digital wallets, might appeal to security-conscious investors.
Broader Platform Strategy
This CryptoIRA acquisition isn’t happening in isolation. Public has been making several strategic moves lately. Last month, they announced members can build their own direct indexes from over 100 different indices from Solactive and S&P. That direct indexing approach lets investors own each stock in the index directly rather than through an ETF derivative.
They’re charging a 0.19% yearly management fee with a $1,000 minimum, which seems reasonable compared to some alternatives. The tax-loss harvesting feature could be valuable for active investors.
Then there’s the Tornado acquisition from September. Public bought an AI platform for financial institutions, bringing over 85,000 Tornado brokerage clients to their active trading platform. Those clients get access to AI-powered tools and charting, plus various investment options including stocks, ETFs, bonds, cryptocurrency, and retirement accounts.
Public’s COO Stephen Sikes mentioned their active trading platform is built for investors who want to execute their own strategies. That’s a different approach than some platforms that push automated investing.
Looking Forward
All these moves suggest Public is trying to position itself as a comprehensive investment platform rather than just another crypto exchange. The CryptoIRA acquisition specifically addresses a growing demand for tax-advantaged cryptocurrency investing, but they’re building out their offerings across multiple asset classes.
It’s a competitive space, and Public is up against some established players. But their recent acquisitions and feature expansions show they’re serious about growing their user base and services. The integration of Alto’s technology over the coming months will be crucial to see how smoothly they can bring these new capabilities to their existing user base.
Perhaps the biggest challenge will be convincing investors that a relatively newer platform like Public can compete with established names like Fidelity in the retirement account space. But with $65 million invested in this acquisition, they’re clearly committed to making it work.
