On Thursday, the Palo Alto-based automated investment service
firm, Wealthfront Inc., announced that customers can now get exposure to
crypto assets via the company’s platform. The firm revealed that
clients 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 Customers to Two Grayscale Trusts
This week Wealthfront has added two Grayscale crypto trusts to the
firm’s menu of investments. Wealthfront is an automated investment
operation sometimes referred to as a robo-advisor that offers wealth
management services. The company was co-founded in 2008 by Andy Rachleff
and Dan Carroll and as of 2020, Wealthfront had $15.85 billion assets
under management (AUM).
The announcement
on Wednesday notes that Wealthfront customers can now gain exposure to
crypto assets via the platform’s Grayscale bitcoin and ethereum trusts.
The news follows the firm’s decision to add customizable Wealthfront portfolios and among the two crypto trusts, there’s hundreds of options to choose from.
“Buying cryptocurrency can feel intimidating,” the announcement
states. “It takes time and effort to research all of the options, set up
a wallet, and monitor an additional account. That’s why we’ve made it
easy to get exposure to bitcoin and ethereum right in your Wealthfront
portfolio, no wallets required. Instead of buying coins yourself, you
can invest in GBTC and ETHE.”
Crypto Trusts via Wealthfront Have a 10% Allocation Limit
Wealthfront says that the GBTC and/or ETHE can be added to anyone’s
portfolio by selecting a combined combination or single trust of up to
10% of the portfolio. The automated investment service firm claims the
10% limit is in the best interest of customers as far as risk is
concerned. “We limit your allocation to GBTC and ETHE because, as a
fiduciary, we act in your best interests at all times, and these
investments can be riskier and more volatile than most ETFs,”
Wealthfront’s announcement details.
The GBTC and ETHE support is not Wealthfront’s first foray into cryptocurrencies as the company added connection support
to Coinbase accounts in 2018. “We make it possible for 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 out our significantly expanded menu of
investment options,” Wealthfront’s announcement concludes. Grayscale’s
bitcoin trust currently has $25.6 billion AUM and the firm’s ethereum
trust has $7.5 billion AUM.
