The Stash investment banking platform will also offer cryptocurrencies
Stash launched its Smart Portfolio offering last March in response to users who want a platform " set and forget ”that it would be handled for them, Douglas Feldman, Stash's Chief Investment Officer, told Blockworks. In the last 10 months, approximately 400,000 Smart Portfolio accounts have been opened. Sixty percent of Stash users with a Smart Portfolio account make routine, automated payments, according to the company.
The company will begin allocating a portion of users' Smart Portfolio accounts to the Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE). GBTC and ETHE have approximately $ 27 billion and $ 10 billion in assets under management, respectively. Allocations to GBTC and ETHE range from 4% to 6%, split equally between trusts, depending on the portfolio's risk profile, according to Elizabeth Marchietti, director of investment strategy at Stash. She added that it was operationally easier to invest in trusts within the existing portfolio of securities than cryptoassets directly.
if (jQuery ("# crm_srl-th_altra_d_mh2_1"). is (": visible")) {console.log ("Edinet ADV adding zone: tag crm_srl-th_altra_d_mh2_1 slot id: th_altra_d_mh2"); } “We are thrilled to partner with Stash, a technologically advanced investment advisor, to enable more investors to access cryptocurrencies through two of Grayscale's flagship products,” a Grayscale spokesperson said. Stash executives told Blockworks that the company has begun looking for alternative options to diversify the portfolio beyond its historical exposures to the equity and bond markets. Marchietti noted that inflation and expected increases in interest rates are likely to have a negative impact on the total return on bonds.
“We simply didn't think bonds would be able to hedge or prove equally the negative correlation with stocks is effective, ”he explained. “It's so much about trying to provide crypto exposure to our clients in a format we really believe in… as a management of this investment product's existing risk profile.”
Feldman noted that while the cryptography, for many, is a trading asset, the company sees it as an asset to invest in over time. “Crypto is volatile; we are all aware of that, ”he said. “But we think that within the confines of a long-term investment strategy with a small allocation and where you constantly invest money on a regular basis, that's fantastic.”
Although the company has no plans to add yet other forms of cryptographic exposure, executives said it will continue to offer education throughout the space. "We think we have a really interesting opportunity to capitalize on our customers' attention on cryptocurrencies," said Marchietti.
