Wealthfront adds Bitcoin and Ethereum as investment options for its clients. The firm has added Grayscale Bitcoin and Ethereum Trust shares to its investment portfolios that will allow its clients to fund into cryptocurrency products.
The California-based investment company, with $25 billion in assets under management, will provide clients with access to Bitcoin and Ethereum through Grayscale Trust Shares. Wealthfront has allowed its clients a maximum of 10% combined distribution of GBTC and ETHE shares, depending on their preferences. The company stated:
"At Wealthfront, we want to support you in building the portfolio that's right for you. That's why earlier this year, we made it possible to customize your Wealthfront portfolio. And it's why today, 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)."
Wealthfront claims to be the first service that makes it possible to gain exposure to cryptocurrency as part of a diversified portfolio with automation features like tax-sensitive rebalancing, intelligent dividend reinvestment, and our Tax-Loss Harvesting.
The firm has made it easy to access Bitcoin and Ethereum directly in its investors' portfolios and does not require them to create separate wallets. Instead of buying coins on their own, customers can invest in GBTC and ETHE. According to a statement from Wealthfront, the 10% cap on cryptocurrency investments is intended to provide protection against the volatility of Bitcoin and Ethereum.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.