Wealthfront ($21 Billion AUM) Offers Cryptocurrency Exposure to its Clients Through Grayscale

Wealthfront, a financial institution based in California, has announced an expansion of its digital asset investment menu on Thursday. Reportedly, the company will now include Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) among its other investment options. Wealthfront also noted that they would deliver additional solutions to customers with cryptocurrencies different from BTC and ETH.

Wealthfront Enables Customers To Invest in GBTC and ETHE

The investment service firm, Wealthfront Inc. rolled out a blog post on July 29, 2021, stating the expansion of its digital asset investment menu. According to the company, users can now diversify their portfolios by allocating funds in Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE). However, Wealthfront warned the customers that such investments are more volatile and risky compared with most ETFs and that they would restrict the allotment.

The investors would not be permitted to allocate more than 10% of their total portfolios into GBTC or ETHE, as the company claims itself to be a fiduciary and promises to act in the customers best interests all the time. 

Furthermore, the company’s clients would not need a crypto wallet or an account in any cryptocurrency exchange to take advantage of the service.

Reportedly, Wealthcare Inc. has over $25 billion in assets under management (AUM) across 440,000 accounts at present. But, they aim to expand their ETF menu soon which according to the company would offer even more cryptocurrency options. 

GBTC Roundup: GBTC May Outweigh The Largest Gold ETF

GBTC AUM has neared $40 billion. The growth of the Grayscale Bitcoin Trust has prompted people to believe that it can surpass the SPDR Gold Shares (GLD) – the largest gold-tracking ETF. However, according to a recent analysis, institutional demand for Bitcoin and Ethereum investment products has taken a breather, and outweighing the SPDR Gold Shares now may be less likely.