Robo advisor Wealthfront has informed its users that they can now gain access to cryptocurrencies via the Grayscale Bitcoin and Ethereum funds
Wealthfront has revealed that it has started integrating cryptocurrency-related products on its platform, and it is starting with the Grayscale Bitcoin and Ether funds. The firm announced this in a blog post late last week, making it possible for its users to gain exposure to cryptocurrencies.
The Robo advisor said, "we're expanding our menu of investments even more to include hundreds of options, including two cryptocurrency trusts: Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE)."
The firm maintained that it is the service that makes it possible to gain exposure to cryptocurrency. This latest offering is part of their diversified portfolio, and it comes with automation features like tax-sensitive rebalancing, intelligent dividend reinvestment and tax-loss harvesting.
"You can add GBTC and/or ETHE to your portfolio by following the instructions here and selecting a combined allocation of up to 10% of your total portfolio. 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 explained.
Wealthfront added that it is committed to expanding the investment options available to its users. Hence, the firm added ARK exchange-traded funds (ETFs) and other ETFs in a wide range of sectors such as cannabis and self-driving cars.
Institutional investors have been clamouring for ways to gain exposure to cryptocurrencies for a while now. With no Bitcoin or Ether ETF in the United States at the moment, the Grayscale cryptocurrency funds make it possible for these investors to gain access to cryptos without holding the underlying assets.