- The Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (GET) have been added to the Palo Alto-based firm’s portfolio of investment vehicles (ETHE)
- According to a statement released by Wealthfront on Friday, this is the first time a major Robo-adviser in the United States has offered clients crypto exposure
- 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 Wealthfront’s platform. Wealthfront is a Robo-advisor with $25 billion in assets under management. Wealthfront’s platform caters to those who prefer a hands-off approach to invest. Robo-advisors conduct a survey of the customer’s explicit risk profile before assigning portfolios that match.
Wealthfront includes Grayscale Bitcoin Trusts
Wealthfront’s decision to include Grayscale bitcoin trusts exemplifies this sort of investing because they don’t require self-custody and may be purchased on traditional exchanges.
Buying cryptocurrency can be scary because it requires time and effort to research all of the options, set up a wallet, and keep track of a second account, according to Wealthfront’s release. That’s why we’ve made it simple to include Bitcoin and Ethereum in your Wealthfront portfolio, with no need for wallets.
Customers will now be able to invest up to 10% of their portfolios in the two Grayscale crypto trusts, according to the company. Unlike brokerage accounts, which allow customers complete control over their portfolios, Robo-advisors have a fiduciary duty to their clients.
Investments made by Grayscale
They limit your allocation to GBTC and ETHE because, as fiduciaries, they always work in your best interests, and these investments may be riskier and more hazardous than most ETFs, according to the firm. ARK Make investments ETFs like ARKF, ARKG, ARKK, ARKQ, and others have also been added to Wealthfront’s ETF offering. These ETFs also provide exposure to cryptocurrency and fintech-related assets.
GBTC and ETHE complete our much-expanded list of investment possibilities. Clients can now choose from a broader pool of socially responsible investments, pick ETFs that are particular to areas like cannabis or self-driving cars, or choose from a larger pool of ARK ETFs, to name a few, according to the firm’s blog post on Friday.
By following the procedures provided and selecting a combined allocation of up to 10% of your total portfolio, you can add GBTC and/or ETHE to your portfolio. They keep your allocation to GBTC and ETHE to a minimum because, as fiduciaries, they must always act in your best interests, and these investments are riskier and more volatile than most ETFs.
Wealthfront co-founder Dan Carroll hinted at the broader portfolio push in April, telling The Block: They believe Wealthfront can be the place where consumers invest responsibly alongside a diverse portfolio.