By Shelly Melancon (Switzerland)
Wealthfront is a California-based asset management firm with over $25 billion in its custody. However, cryptocurrencies have caught the fancy of the firm as it looks to provide investors with a wide range of investment products along the line of cryptocurrencies. Trusts on flagship cryptocurrency, Bitcoin and largest altcoin by market cap, Ethereum are the only ones being considered by Wealthfront currently.
As per providing exposure to the two crypto assets, Wealthfront hopes to achieve this with the help of Grayscale. Grayscale Investments has become popular due to its Bitcoin Trust in which it reportedly holds over 650,000 BTC. In a move to broaden its portfolio, Wealthfront will include Grayscale Bitcoin Trust (GBTC) and Ethereum Trust (ETHE).
Wealthfront Assures Users of Ease of Investing in Grayscale Trusts
With the latest move by Wealthfront, it positions itself as the first firm in its industry to offer such service in its expanded portfolio. Wealthfront also boasts of a number of automated features like robo trading, tax-sensitive rebalancing and many others. Customers earn a 2% – 8% annual percentage rate on other investment products.
While announcing its now expanded portfolio, Wealthfront noted that its users can now invest in both digital assets (BTC and Ethereum) without having to worry about storing the assets. Wealthfront has pledged to relieve its users of the burden of researching, setting up a wallet and then trying to monitor their digital assets. Thus, they can invest in both Trusts via accounts on the platform, instead of purchasing the assets themselves.
Also read:Following this, users will be able to dedicate only ten percent of their total portfolio to both Trusts. This is to protect the funds of investors as investments like these can bear numerous risks.
Wealthfront is not the only investment firm that has indicated interest in joining Grayscale Bitcoin and Ethereum Trusts. Last week, Rothschild Investments also bought about 14,000 shares in Grayscale Ethereum Trusts.
Grayscale Set the Pace Among Institutional Investors
It is difficult not to acknowledge the dominant role of Grayscale as institutional investors scrambled to get a piece of the pie of Bitcoin and other crypto assets. Grayscale has the largest Bitcoin holdings, with software giant, MicroStrategy and a few others trailing behind it. Grayscale Bitcoin Trust unlocking is one of the most anticipated events in the crypto space. A July 21st unlocking after a 6-month lock-up period instigated a selling pressure in the market.
In its cryptocurrency Fund, Bitcoin accounts for over 65% of its crypto holdings. Ethereum is second place, while Cardano’s ADA recently gained third place after the asset management firm doubled down on its holdings. Other cryptocurrencies in its include EOS, Bitcoin Cash, Ethereum Classic. Grayscale is also eyeing a Bitcoin ETF in the US, leading it to partner with BNY Mellon, as according to the firm’s CEO, Micheal Sonnenshein, a Bitcoin ETF is a must for Grayscale.
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