Grayscale – the world’s largest digital asset fund based in the United States – has recently partnered with fintech investment platform iCapital to provide cryptocurrency investment strategy to the latter’s 6,700+ clients.
Crypto Exposure for Wealthy Clients
As reported by Globe News Wire, the partnership will be pairing iCapital’s technology and investment capabilities with Grayscale’s expertise in the cryptocurrency space. Together, iCapital will provide access to Grayscale’s “diversified market-cap-weighted investment strategy” to their thousands of clients.
Lawrence Calcano, Chairman, and CEO of iCapital Network, said cryptocurrencies are of great interest to wealthy clients, making a Grayscale partnership a logical next-step:
“Advisors and their clients have expressed an increasing appetite for uncorrelated return potential in their portfolios, and digital currencies are at the center of the conversation right now… We are delighted to partner with Grayscale, a recognized leader in digital currency investing with the experience to help investors navigate this dynamic asset class.”
Grayscale’s data indicates a similar trend. Their survey of financial advisors shows that 61% of their clients have approached them for more information about cryptocurrency investing.
Grayscale COO Hugh Ross outlined his excitement for the deal and recognized how diversifying into cryptocurrency can help wealth managers store their wealth over time – especially in today’s world.
“In a world with trillions of dollars of fiscal stimulus and negative real interest rates, the wealth management industry is recognizing the diversification benefits and inflation hedge potential that digital currencies can offer in an investment portfolio.”
Grayscale: The Best US Option for Crypto Exposure
Regarding the partnership, Ross added that Grayscale differentiates itself from other potential iCapital partners through its “transparency as an SEC reporting company.”
Indeed, though attempts at a Bitcoin or cryptocurrency ETF in the US have been repeatedly shot down by the SEC, regulators remain accepting of Grayscale and many of its products.
The digital asset manager has recently doubled the number of SEC reporting products to six – adding a Bitcoin Cash trust, Litecoin trust, and Ethereum Classic trust.