Grayscale Bitcoin Trust (GBTC.Q) parent company Grayscale Investments put out toolkit for financial advisors, and here’s why you should read it

Grayscale Investments
07/28/2020

In a bid to draw in more attention to their core offerings, Grayscale Investments, the parent company to Grayscale Bitcoin Trust (GBTC.Q) and other crypto-asset management companies, launched a toolkit intended to educate financial advisors and wealth managers.

It’s called The Digital Currency Toolkit for Financial Advisors, and while it’s intended audience is the financial advisor and accredited investor crowd, it’s turned out to be a helpful little crypto 101 for the rest of us little guys.

“Having been in this space since 2013, Grayscale Investments is committed to educating financial advisors and providing them with the tools they need to consider and decide how digital currencies may fit into their clients’ portfolios and investment strategies. Given the uncertainty in today’s environment, investors are increasingly turning to assets like Bitcoin. Now is the time for advisors to better understand this asset class,” said Michael Sonnenshein, managing director at Grayscale Investments.

Grayscale Investments is the world’s largest digital currency asset manager, sporting more than $4 billion in assets as of June 30, 2020. They’re focused on helping digital assets like Bitcoin raise their profile and bridge the gap to the mainstream investor. The company has been around since 2013, and places a high priority on legal compliance, reporting and disclosure, while supporting investors with service providers and products.

The company’s value proposition involves offering investors access to cryptocurrency, and specifically in this case, Bitcoin, without any of the risks associated with ownership and custody. Namely, you don’t need to buy yourself a Trezor wallet, worry whether or not it’s a bugged counterfeit with a bug leading back to hacker, and then find yourself a reputable exchange with which to do business with all the hassle that entails.

Then never sleep again as you worry about whether or not your Trezor wallet has an adequate charge, is at risk of getting stolen, or any of the 10,000 other things that could potentially go wrong. Grayscale has taken care of all of that for you by bringing to market a family of 10 investment products which provide access and exposure to the crypto in the form of a security.

That’s not a bad deal if you feel you can trust the company behind it, but personally I’m a DIY kinda guy, and an insomniac, so I already stay up all night. Frankly, I’d worry more about any given company handling my assets than I would if I knew where they were, safely stored away. But still, having downloaded the guide and gone through it, the toolkit is a timely and well-researched resource for anyone looking to learn a bit more about Bitcoin and cryptocurrency investing in general.

It offers practical information for both advisors and the lay person dealing with exchanges that could easily be considered a stripped down crypto 101, and good prep for anyone looking to due their due diligence on the crypto-markets. It involves thoughtful conversations with clients and also explores some of the more unique qualities of digital currencies.

Some of the topics covered include:

  • The Bitcoin Investment Thesis
  • Bitcoin’s Unique Qualities
  • Investor Types and Bitcoin
  • Mainstream Acceptance of Bitcoin
  • Portfolio Simulations with Bitcoin*
  • How to Invest

The case for digital asset management is a strong one. Governments are already starting to breathe down the necks of cryptocurrency investors, enthusiasts and infrastructure, asking pointed questions about the future of value. While there’s lots of folks out there touting arguments about the unbreakable cryptographic strength of encrypted blockchains, there’s also the growing impetus of governments looking to crack down on illegal activities happening under their proverbial noses. Regulation is coming.

Having a company out in front of regulation, behaving by existing rules and paying all the proper obeisances could be a way to get and stay on top of the coming regulatory changes.

—Joseph Morton

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