Robo-advisor giant Wealthfront has announced it will provide its nearly 400,000 clients with the option to get bitcoin exposure through Grayscale Bitcoin Trust (GBTC).
The firm, which provides a hands-free approach to investing and has $25 billion of assets under management (AUM), announced the new addition to its offerings on July 29. But clients will be limited to allocating up to 10% of their portfolios in bitcoin.
Wealthfront claimed the limit to be a protection because they consider GBTC an investment “riskier and more volatile than most ETFs.” The company also added new ETFs to its menu of investment options, including ARK, cannabis, self-driving cars, and fintech options.
But when it comes to bitcoin, those with brokerage accounts with Wealthfront will be given only one option for BTC exposure – GBTC. Grayscale’s bitcoin trust shares attempt to follow the BTC/USD market price, minus expenses and fees. Naturally, however, the investor won’t possess real bitcoin.
Wealthfront said it chose that investment vehicle because buying bitcoin “can feel intimidating – it takes time and effort to research all of the options, set up a wallet, and monitor an additional account.”
However, buying bitcoin and transferring it to a self-custodial wallet has become hassle-free nowadays. An individual can start small, using an exchange and their mobile phone as a wallet, and build up from there. Eventually, buying KYC-free bitcoin and using privacy-conscious tools will become effortless.
Additionally, going down the Bitcoin rabbit hole will enable the investor to acquire as much bitcoin as they see fit and custody it themselves to become a fully sovereign individual.