Are There Robo-Advisors That Include Crypto or Leveraged ETFs?

Traditional Robo-Advisors: Cautious on Crypto and Leverage

For most of the past decade, traditional robo-advisors steered clear of cryptocurrencies and leveraged ETFs. Early digital platforms like Betterment and Wealthfront built their portfolios around conventional stock and bond ETFs – avoiding “exotic” assets due to volatility, regulatory uncertainty, and fiduciary duty concerns. Crypto in particular was seen as highly speculative and unregulated, while 2× or 3× leveraged funds were viewed as trading tools unsuitable for passive, long-term investors. In fact, when Wealthfront first allowed clients to add a bit of Bitcoin or Ethereum exposure in 2021, it strictly capped it at 10% of the portfolio, explicitly warning that these investments are “riskier and more volatile than most ETFs” . Similarly, Betterment only waded into crypto after careful consideration – acquiring the crypto-specialist Makara in 2022 and later offering a small, managed crypto ETF portfolio for clients who “want limited exposure to digital assets” . Leveraged ETFs, with their amplified daily moves, were even more taboo; regulators have long cautioned they “may require daily monitoring” and can “magnify losses” if misused  . In short, the first generation of robo-advisors largely said “no thanks” to crypto and 3× funds, preferring safer, plain-vanilla portfolios.

Next-Gen Platforms in 2025: Pushing Boundaries with AI

Fast forward to 2025, and a new breed of robo-advisors is emerging to cater to investors’ growing appetite for crypto and leveraged strategies. Armed with advanced tech (especially AI) and operating under proper regulatory oversight, these next-gen platforms are expanding the menu of investable assets – but doing so with sophisticated risk management as a safety net. The result is a more “edgy” robo-advisor experience that opens the door to high-octane assets previously off-limits, without (hopefully) exposing clients to uncontrolled risk. For example, alphaAI Capital – an SEC-registered robo-advisor platform  – explicitly advertises AI-managed crypto and leveraged ETF portfolios alongside traditional offerings. Such platforms represent a fundamental departure from the old static models: instead of a fixed basket of index funds, they dynamically adjust allocations in real time, using AI to respond to market conditions and actively control volatility. The ethos is that if done responsibly, even Bitcoin or 3× leveraged ETFs can have a place in a portfolio. It’s an exciting development in automated investing, albeit one that acknowledges these assets are high-risk and not for the faint of heart. Below, we highlight how robo-advisors in 2025 are incorporating crypto and leveraged ETFs, and why robust oversight (often AI-driven) is the key to making it work.

Crypto Enters Robo-Advisory Portfolios

It took years of debate and some regulatory clarity, but crypto has finally made its way into robo-advisor offerings. Traditional platforms have tiptoed in: Betterment now offers a fully automated Crypto ETF portfolio (giving exposure to Bitcoin and Ethereum via ETFs rather than direct coins) , and in the past even recommended limiting crypto to ~5% of one’s investable assets. Wealthfront, similarly, let clients allocate a small slice of their portfolio to Bitcoin and Ether trusts – no wallets required – with a strict cap and reminders of fiduciary responsibility . These cautious moves underscored that while interest in crypto was sky-high, risk and regulatory concerns loomed large.

Today’s next-gen robo-advisors are going a step further by offering managed crypto portfolios that actively tackle those risks. A prime example is alphaAI Capital’s new Crypto ETF strategy, launched in 2025 to give investors smarter access to the digital asset class  . Unlike a buy-and-hold approach (where you simply buy Bitcoin and hope for the best), alphaAI’s strategy uses AI-driven models to dynamically adjust exposure to crypto. In practice, that means the portfolio will lean into Bitcoin when market conditions look favorable and scale back exposure when crypto markets turn stormy . All the crypto exposure is through familiar, regulated ETFs – so you get Bitcoin in your account via an ETF (avoiding the complexities of crypto wallets and exchanges) . What really sets this apart is the built-in risk management: the strategy even incorporates hedging tools like inverse Bitcoin ETFs (essentially bets against Bitcoin) to cushion the impact of steep drawdowns that are common in crypto markets . As alphaAI’s CEO put it, “Crypto investing has historically been an all-or-nothing bet. Our strategy is built to help investors capture long-term growth while managing the risks that make crypto so challenging.”  In other words, yes – you can now find a robo-advisor that includes crypto – but it likely isn’t just tossing coins in your account and crossing its fingers. The platform’s AI is actively managing volatility, providing downside protection, and even harvesting tax losses along the way  to make crypto exposure as palatable as possible. The takeaway: crypto is entering robo portfolios, especially via ETFs, but always with an emphasis on taming the notorious volatility.

Leveraged ETFs: High Risk, High Reward – Now in Robo Form?

Leveraged ETFs (think funds that deliver 2× or 3× the daily return of an index) have traditionally been a no-go zone for mainstream robo-advisors. And it’s easy to see why: while these funds can supercharge gains, they can just as easily magnify losses, and their compounding effects make them ill-suited for long-term holding unless carefully managed . Conventional wisdom has long held that leveraged ETFs are “too risky for long-term investors,” “only for professionals,” and “require constant trading”  – not exactly the kind of instrument a set-it-and-forget-it robo service would put in grandma’s retirement account. Simply buying and holding a 3× ETF is generally a recipe for wild swings in your portfolio (or worse). As the team at alphaAI bluntly notes: “When it comes to leveraged ETFs, simply buying and holding won’t work.”

So, do any robo-advisors include leveraged ETFs now? Surprisingly, yes – a new generation does, but with major safeguards. Platforms like alphaAI Capital are essentially reinventing how leveraged ETFs are used by pairing them with intelligent risk management systems. The philosophy is that with the right oversight, you can reap the powerful upside of leverage while avoiding its typical pitfalls . For instance, alphaAI’s Leveraged ETF strategy doesn’t just plop a 3× fund in your account and leave it there. Instead, it runs a tactical long/short portfolio that dynamically shifts exposure based on real-time market conditions . In practice, this means during bullish periods the AI will tilt the portfolio toward aggressive positions – e.g. using TQQQ (a 3× Nasdaq-100 ETF, often called the “growth engine”) or UPRO (3× S&P 500) to amplify gains – but when the market momentum fades or turns negative, the system kicks into defense. The robo can scale back those leveraged long positions and ramp up hedges like SQQQ and SPXU (3× inverse ETFs for the Nasdaq-100 and S&P 500, respectively) to buffer against drawdowns  . By “pairing longs with strategic shorts”, the platform aims to reduce net exposure in downturns so you’re not left holding a leveraged bag through a crash . This kind of agile, AI-driven approach is a far cry from the static portfolios of first-gen robo-advisors.

Crucially, risk management is front and center. The AI monitors risk factors daily and adjusts positions to keep the portfolio’s volatility within a client’s acceptable range . You’re never blindly holding a 3× ETF – the system is always evaluating if the exposure is appropriate, given the market’s current state. If markets get choppy, the algorithm automatically dials down risk (or adds more hedge) to “turn a speculative tool into a disciplined strategy” for the long run . AlphaAI even emphasizes that it “strongly disagrees” with the notion that leveraged ETFs must only be short-term trades; with active downside protection and AI oversight, they believe these funds can be harnessed for long-term growth in a responsible way . This isn’t theoretical – early adopters have seen the approach “control… volatility and losses” effectively in practice , giving hope that leveraged ETFs might finally be accessible to regular investors without the usual anxiety. Still, it’s worth noting that few mainstream robos have followed suit yet – the inclusion of leveraged ETFs remains a differentiating feature of only a handful of innovative platforms like this. For the average investor, the message is: yes, leveraged ETF strategies are now available via robo-advisors, but only on platforms explicitly built to manage their risks (don’t expect to find a 3× fund in a standard Vanguard or Schwab robo portfolio anytime soon).

The Key: Intelligent Oversight and Safeguards

Whether we’re talking crypto or leveraged ETFs, one theme is clear: the only reason these high-risk assets are showing up in robo-advisor portfolios now is because of improved risk management and oversight. The next-gen robo platforms enabling this trend are typically those that have invested heavily in technology (AI, machine learning, real-time analytics) to actively supervise and adjust client portfolios. For example, alphaAI’s system uses a suite of predictive models and a rules-based trading engine to ensure that every move stays within strict, pre-defined risk limits . The AI isn’t some unchecked black box either – it operates with multiple built-in safety protocols and human oversight, and the platform is a fiduciary that must act in clients’ best interest . In practical terms, that means you get exposure to these “cutting-edge” assets, but with guardrails. The robo-advisor can automatically cut your crypto exposure if Bitcoin starts free-falling, or rotate your leveraged ETF position into cash or hedges if volatility spikes – all without you having to lift a finger. This kind of responsiveness and risk control is what makes the difference between irresponsibly offering risky assets to retail investors, and doing so in a prudent, controlled manner. It’s also what regulators and clients alike want to see if crypto and leverage are involved. So, if you’re intrigued by the idea of spicing up your portfolio with Bitcoin or a 3× Nasdaq fund, choose a platform with strong safeguards. Look for words like “risk-managed,” “AI-driven,” and of course ensure the robo-advisor is properly registered and transparent about how it handles these investments. The excitement of higher returns is only worth it if there’s a solid safety net.

Conclusion: A New Breed of Robo-Advisors is Expanding Your Options

In summary: Yes – a new breed of robo-advisors (like alphaAI Capital, among others) now include crypto and leveraged ETFs in their offerings. This marks a bold evolution in the robo-advisory space, opening up opportunities to diversify into assets once considered off-limits for automated investing. Investors who crave exposure to things like Bitcoin or the turbocharged returns of leverage no longer have to DIY or stray into unregulated corners of the market – there are regulated, AI-enhanced platforms that can deliver those options as part of a managed portfolio. It’s an exciting development, giving everyday folks access to strategies historically reserved for more sophisticated traders . But (and this bears repeating), with great reward potential comes great risk. The robo-advisors venturing into crypto and 3× ETFs are keenly aware of that – which is why they’ve built in advanced risk management at every turn. The AI handles the complexity: adjusting exposures, hedging against downturns, and generally keeping the portfolio on track so you don’t end up with a disastrous loss from a poorly timed leverage bet. As an investor, you should still approach these high-volatility options with caution and a long-term mindset. However, if you choose a platform with robust safeguards, you can explore the “exciting but high-risk” assets confident that a smart system is co-piloting the journey. Robo-advisors that include crypto or leveraged ETFs do exist – and they can give you a taste of those cutting-edge investments – just make sure you partner with one that knows how to tame the risk while unleashing the opportunities  . The future of robo-investing is indeed edging into more adventurous territory, but with AI and prudent oversight, it’s doing so in a way that keeps your financial well-being front and center.