US robo-adviser Wealthfront, with $25bn in assets, has expanded its services offering by opening up access to cryptocurrency funds from Grayscale Investments to clients.
Wealthfront customers can add Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) units to their portfolios. The company stressed that cryptocurrencies are more volatile than most ETFs, so investing in trusts is allowed up to 10% of a user's total asset value.
Portfolios containing cryptocurrencies are covered by Wealthfront's automated features, including "smart dividend reinvestment" and "tax-loss harvesting". (tax-loss harvesting).
Wealthfront's plans to open up the digital asset market to customers became known in April. At the time, co-founder Dan Carroll told Reuters that the robo-adviser would set a limit of 20% of the value of a user's total portfolio.
Grayscale Investments manages $34.7bn in assets, with its largest fund being a bitcoin-based trust ($25.94bn). ETHE is valued at $7.26bn.
07/29/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products. Total AUM: $34.7 billion $BTC $BAT $BCH $LINK $MANA $ETH $ETC $FIL $ZEN $LTC $LPT $XLM $ZEC $UNI $AAVE $COMP $CRV $MKR $SUSHI $SNX $YFI $UMA $BNT $ADA
Earlier, the asset manager signed an agreement with Bank of New York Mellon under which the financial holding will become a GBTC custodian. It will also act as a transfer agent and take care of the ETF after the trust is converted into an exchange-traded fund.
Recall that in July Grayscale Investments introduced a new investment product consisting of CoinDesk DeFi Index decentralised finance components.