Automated Investment Service Firm Wealthfront Adds Support for Grayscale's BTC, ETH Trusts

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.

What do you think about Wealthfront allowing customers exposure to bitcoin and ethereum investment vehicles? Let us know what you think about this subject in the comments section below.

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