By Larry Wright
Wealthfront is one of the largest investment firms in California. For 2020, its total AUM was valued at $25 billion. The company recently updated its blog post. The article announces that the investors will be able to get access to Grayscale cryptocurrency trusts. At present, Wealthfront hosts around 440,000 customers on its platform.
The investment enterprise is planning to allow their clients to allocate their funds into Bitcoin Trust (GBTC) and Ethereum 2.0 Trust (ETHE). The investors will have the ability to invest as much as 10% of their portfolio into the Grayscale shares. Wealthfront is also planning to introduce ETFs to provide their clients with better cryptocurrency options. According to the management, the company is looking into ARK ETF and some other enterprises that are related to Cannabis and auto-navigation vehicles.
Grayscale’s Bitcoin Trust may Overtake the Largest Gold Bound ETF in the World
The SPDR ETF is the largest Ethereum ETF that is pegged to gold. On the other hand, Grayscale is the large Bitcoin trust in the world. Up until last year, the difference in volume between the two ETFs was quite wide. While GBTC was only valued at $5 billion, the SPDR has gained a value of $80 billion. However, at the beginning of the year, many institutional investors started to take an interest in the Bitcoin market.
With the new flow of commercial investors, the GBTC started to grow and soon become as strong as $20 billion in terms of AUM. The speculations soon arise in the market that Grayscale has the potential to outrun the SPDR ETF. Within the first two quarters of 2021, the GBTC AUM has become as large as $40 billion. For the time being, Bitcoin has managed to recover from a slump price, and it is valued at $41K at press time.
Bitcoin has been in a declining trend for the last three months. According to technical analysts, the flagship cryptocurrency must surpass many key levels and get a price point of above $42K. If such an event happens over the weekend, it could potentially revive the bull run once again. However, many people have predicted that despite all positive changes, institutional interest is diminishing.
The crypto market is always affected by the fundamentals and market sentiment. Analysts claim that the state of GBTC premium, decreasing net outflows for Bitcoin, Purpose and QBTC ETFs combo, and recession in Coinbase revenue has contributed to commercial investors taking a back foot.