Wealthfront asset management is exploring alternatives to allow consumers to add crypto to their investment portfolio. The US asset manager has advocated that it will begin enabling its clients to invest in crypto. The development is the most advanced evidence of increasing acceptance of crypto currencies by mainstream finance. Moreover, the California-based company elucidated that starting this week, clients will also be capable of developing their portfolios, choosing from several exchange-traded funds (ETFs) offered by the Wealthfront team.
The decision indicates a prominent shift of Wealthfront, whose investment strategy has been conventionally recognized as more conservative and long-term, automatically allotting client assets into multiple ETF-based portfolios. Additionally, the expanded portfolio reveals further improved Wealthfront’s investment portfolios, which will proceed to permit consumers to add the company’s automated investment services like rebalancing and tax-loss harvesting and access the firm’s financial planning tools and fiduciary advice at no additional cost. Nevertheless, the cryptos in which Wealthfront will invest is still unknown.
US-Based Wealthfronrt has $16 Billion in AUM.
The chief strategy officer and the co-founder of Wealthfront, Dan Carroll, elucidated that the transformation indicates a wider push by financial technology startups to provide a broad range of services in their platforms. It also shows an expanding desire from Gen Z and millennials investors to make some investment choices. Additionally, based on regulatory filing in October 2020, Wealthfront, whose services are accessible to US customers, has approximately 357,425 accounts and AUM (assets under management) of roughly $16 billion.
Furthermore, Wealthfront’s latest decision appears when retail trading of cryptocurrencies and stock witnesses a boom. Additionally, online platforms like Square Inc’s Cash App, Coinbase Global Inc, Venmo, and Robinhood have noticed their business growth over the previous year as young homebound customers took to trading and purchasing financial assets online through the COVID-19 lockdowns. Cryptocurrency is seen as a transparent way to develop user numbers on fintech apps and develop new revenue streams. Additionally, fintech apps that provide cryptos are earning loads of money.
Moreover, Square’s Cash App introduced cryptocurrency purchases in mid-2018 and listed $308 million in Bitcoin revenue in its most current earnings report. London-based Revolut commenced offering cryptocurrencies to consumers in 2017. While Robinhood started offering crypto services in February 2018, PayPal’s Venmo began enabling users to trade, hold and purchase cryptocurrencies on its app this month. Such advancements stimulate more mainstream adoption of cryptocurrencies.