The past year has seen several fintech companies provide their clients access to the cryptocurrency market. PayPal, Venmo, and several others make it possible for their clients to buy, sell, and store cryptocurrencies. Wealthfront is joining this list after announcing that users can directly gain exposure to cryptocurrencies later this year.
Wealthfront to roll out crypto feature this year
Fintech robo-adviser Wealthfront has announced that its customers can invest as much as 20% of their portfolios in digital assets. The firm is set to roll out this feature later this year and make it available to its clients globally.
Wealthfront Chief Strategy Officer Dan Carroll said the company would start offering cryptocurrency to its clients later in 2021. The California-based fintech firm had to take this step because of new retail interest in digital assets like Bitcoin and Ether (ETH).
“This launch opens up an enormous opportunity for Wealthfront. Our current clients alone have over $50 billion in assets linked to Wealthfront sitting in outside brokerages. Adding the ability for them to invest with Wealthfront based on their values and beliefs and apply the benefit of our automation will enable them to simplify their investment activities and pursue their goals by trusting the management of those assets to us,” Carroll said.
This latest development will expand the firm’s investment options. Clients can now use the magic of Wealthfront’s automated investment services for their cryptocurrency assets. Carroll added that people could go to Coinbase or Robinhood if they want to gamble. However, Wealthfront can serve as a platform for people to invest responsibly in crypto as part of a diversified portfolio.
Wealthfront brings cryptocurrencies to its over 400,000 users
By providing this service, Wealthfront will grant its over 400,000 users direct access to Bitcoin and a host of other cryptocurrencies. The fintech firm has $12 billion in assets under management. It is one of the leading robo-advisory companies in the world.
The company had previously allowed users to link their Coinbase accounts to Wealthfront. However, it began thinking about providing cryptocurrency services directly to its customers last year.
This update further position the firm as a leading investment platform for young people who prefer flexibility with their investment and the reassurance that they are putting funds where they will grow in the long term.