Automated securities services company Wealthfront provides support for Grayscales BTC, ETH Trusts – Finance Bitcoin News
On Thursday, Palo Alto-based automated securities services company Wealthfront Inc. announced that customers can now invest in crypto assets through the company’s platform. The company announced that customers can choose from two Grayscale Investment Trusts as the company now offers investments in the Grayscale Ethereum Trust (ETHE) and the Grayscale Bitcoin Trust (GBTC).
Wealthfront connects clients with two grayscale trusts
This week, Wealthfront added two grayscale crypto trusts to the company’s investment menu. Wealthfront is an automated investment process, sometimes referred to as a robo-advisor, that provides wealth management services. The company was co-founded by Andy Rachleff and Dan Carroll in 2008 and had $ 15.85 billion in assets under management in 2020.
Wednesday’s announcement stated that Wealthfront clients can now invest in crypto assets through the platform’s Grayscale Bitcoin and Ethereum trusts. The message follows the company’s decision to add customizable Wealthfront Portfolios and there are hundreds of options to choose from among the two crypto trusts.
“Buying cryptocurrency can be intimidating,” the announcement said. “It takes time and effort to research all the options, set up a wallet, and monitor an additional account. That’s why we’ve made it easy for you to add Bitcoin and Ethereum directly to your Wealthfront portfolio without the need for a wallet. Instead of buying coins yourself, you can invest in GBTC and ETHE. “
Wealthfront crypto trusts have an allotment limit of 10%
Wealthfront says GBTC and / or ETHE can be added to any portfolio by selecting a combined combination or a single trust of up to 10% of the portfolio. The automated investment services firm claims that the 10% limit on risk is in the best interests of clients. “We limit your allocation to GBTC and ETHE because we as trustees act in your best interests at all times and these investments can be riskier and more volatile than most ETFs,” said Wealthfront’s announcement.
The GBTC and ETHE support isn’t Wealthfront’s first foray into cryptocurrencies, as the company added connection support for Coinbase accounts in 2018. “We allow you to add information about your cryptocurrency holdings in your Coinbase account to Wealthfront to get a more holistic view of your financial picture,” the company said at the time.
“GBTC and ETHE round off our significantly expanded range of investment opportunities,” concluded Wealthfront’s announcement. Grayscale’s Bitcoin trust is currently AUM 25.6 billion and the company’s Ethereum trust is AUM 7.5 billion.
What do you think of Wealthfront, which gives clients exposure to Bitcoin and Ethereum investment vehicles? Let us know what you think on this matter in the comments below.
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