Wealthfront customers, an automated investing service, may now get exposure to cryptocurrency by incorporating two cryptocurrency trusts into the financial options of a robo-advisor.
The company headquartered in Palo Alto, Calif. has extended its investment vehicle lineup into the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE).
The initiative represents the first step of a major U.S. robo advisor to give customers crypto-exposure, Wealthfront Friday said. Customers may invest up to 10% of their entire portfolio in both trusts since the rationale for this limitation is crypto volatility.
Wealthfront’s Place in the Investment App Sphere
Wealthfront is one of the world’s biggest robo-consultancy platforms with $25 billion in managed assets. Grayscale Investments is a part of Digital Currency Group, the parent company of CoinDesk.
As more investors become increasingly cryptocurrency, Wealthfront, a Palo Alto-based company with an assets under management of $25 billion dollars (AUM), has extended its customers’ investing choices to include the Grayscale Bitcoin Trust (GBTC) (ETHE).
The new product from Wealthfront will also include automatic features like “intelligent dividend reinvestment” and tax loss harvesting, which are designed to reduce tax costs for customers.
When utilizing GBTC and ETHE, investors will not need to establish external wallets and take care of technical issues like the safeguarding of private keys. All crypto products from Grayscale are designed simply to follow the price movement of the underlying asset.
GBTC is New York-based company Grayscale Investment’s oldest and biggest cryptocurrency fund. Commanding AUM $25.9 billion, it provides a Bitcoin-regulated SEC exposure to monitor cryptocurrency benchmark prices.
What is Grayscale?
Grayscale Investments is a well-known trend-setter in the cryptosphere. The New York-based company really possesses 449,596 BTC, which amounts to $5.1 billion and 2.14 trillion of the total digital currency portfolio issued by the Bitcoin Trust Fund (GBTC), which owns and monitors Bitcoin’s value.
The firm runs ten cryptocurrency investment funds aimed at institutional investors. Grayscale’s altcoin portfolio includes Ethereum, Bitcoin Gold, Zcash, XRP, and more. Grayscale expresses their interest by including an Ethereum Trust in the mix.