- The Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (GET) have been added to the portfolio of investment vehicles (ETHE) of the Palo Alto-based company.
- This will be the first time a major robo-advisor in the United States has offered crypto exposure to its clients, according to a statement released by Wealthfront on Friday
- With $ 25 billion in assets under management, Wealthfront is one of the world’s largest robo-advisory systems
The Grayscale Bitcoin Belief (GBTC) and the Grayscale Ethereum Belief (ETHE) have been integrated into the Wealthfront platform. Wealthfront is a robo-advisor with $ 25 billion in assets under management. Wealthfront’s platform is aimed at those who prefer a hands-on approach to investing. Robo-advisors conduct a survey of the client’s explicit risk profile before assigning suitable portfolios.
Wealthfront includes grayscale bitcoin trusts
Wealthfront’s decision to include Grayscale Bitcoin trusts exemplifies this type of investment as they do not require self-custody and can be bought on traditional exchanges.
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Buying cryptocurrency can be scary as it takes time and effort to research all your options, set up a wallet, and keep track of a second account, according to the publication by Wealthfront. That’s why we’ve made it easy to add Bitcoin and Ethereum to your Wealthfront portfolio without the need for wallets.
According to the company, customers can now invest up to 10% of their portfolio in the two Grayscale crypto trusts. Unlike broker accounts, which give clients complete control over their portfolios, robo-advisors have a fiduciary duty to their clients.
Investments by Grayscale
They limit your allocation in GBTC and ETHE because as trustees they always work in your best interests and these investments, according to the company, can be riskier and more dangerous than most ETFs. ARK Make Investments ETFs like ARKF, ARKG, ARKK, ARKQ and others have also been added to Wealthfront’s ETF offering. These ETFs also offer exposure to cryptocurrency and fintech-related assets.
GBTC and ETHE complete our greatly expanded list of investment opportunities. Clients can now choose from a wider pool of socially responsible investments, choose ETFs that are specifically tailored to areas like cannabis or self-driving cars, or choose from a larger pool of ARK ETFs, to name a few, according to the company’s blog post on Friday.
By following the procedures provided and selecting a combined allotment of up to 10% of your total portfolio, you can add GBTC and / or ETHE to your portfolio. You keep your allocation in GBTC and ETHE to a minimum as, as trustees, you must always act in your best interests and these investments are riskier and more volatile than most ETFs.
Pointing to the broader portfolio push in April, Wealthfront co-founder Dan Carroll told The Block: They believe Wealthfront can be the place where consumers invest responsibly alongside a diverse portfolio.