Bitwise Asset Management, one of the world’s leading crypto asset managers, has announced the launch of three new separately managed account (SMA) strategies available through the Eaglebrook platform. The SMA structure, which only recently became possible for crypto, allows individuals to move existing held-away crypto assets from digital wallets to a custodial account that can be monitored and reported on by their advisor, without triggering a taxable event. Advisors' clients retain direct ownership of the assets, which provides greater opportunities for tax-loss harvesting compared to traditional fund vehicles.
The new suite of Bitwise SMA strategies is available to a growing list of more than 50 leading RIAs utilizing the Eaglebrook platform, a premier turnkey asset management platform for wealth management firms.
Of the three Bitwise SMA offerings on Eaglebrook, two are tied to existing indexes: the Bitwise 10 Large Cap Crypto Index, which includes 10 of the most highly valued crypto assets, and the Bitwise Decentralized Finance Crypto Index, which tracks an index of the largest assets in decentralized finance. The third offering, the Bitwise Crypto Category Leaders SMA, is a new rules-based strategy that aims to select the leading crypto asset in each of the most important sectors in crypto. The resulting portfolio of blue-chip crypto assets provides diversified exposure to crypto’s fastest-growing use cases.
The launch brings Bitwise’s total number of SMA offerings to seven at a time when professional investors are increasingly embracing the vehicle. SMAs let advisors and institutions manage their clients’ crypto holdings in concert with an overall investment plan. A recent survey conducted by Bitwise and VettaFi found that 59% of advisors said “some” or “all” of their clients were investing in crypto on their own, outside of the advisory relationship. One of the most sought-after features of separately managed accounts is providing a tax-efficient means to bring those crypto assets under professional supervision.
“In the hundreds of conversations we have with professional investors across the country every week, one thing has become increasingly clear: SMAs present a major business opportunity for them,” said Bitwise Chief Distribution Officer Mick McLaughlin. “Through this partnership with Eaglebrook, we’re happy to provide a smart and integrated way for them to access the crypto opportunities many of their clients demand.”
Eaglebrook’s platform, which has grown to serve dozens of RIAs collectively managing over $200 billion since the company’s founding in 2019, allows for seamless client onboarding, investment execution, account management, and performance reporting integrated with the RIA’s portfolio management system.
“For the past five years, Bitwise’s singular focus has remained helping professional investors navigate and access the opportunities in crypto,” said Bitwise CEO Hunter Horsley. “Today, we serve over 1,500 firms and wealth teams with a broad suite of solutions, spanning ETFs, private funds, hedge fund solutions, and SMAs. Interest in the SMA format has been rapidly growing, so we’re excited to partner with Eaglebrook, the leading SMA platform for wealth managers, to provide crypto solutions that are purpose-built for the needs of their practices.”
The Bitwise 10 Crypto Index Strategy, the Bitwise DeFi Crypto Index Strategy, and the Bitwise Crypto Category Leaders Strategy are available to financial advisors on the Eaglebrook platform with a minimum investment of $10,000. Investors have direct ownership of crypto assets on the Gemini exchange, and 8949 tax statements are provided directly through the Eaglebrook platform.
The number of RIAs, advisor teams, family offices, and institutions that rely on Bitwise for their clients’ crypto exposure doubled in 2022 to over 1,500 firms, who navigate crypto with the support of Bitwise’s nationwide distribution and client service team.
For more information, visit https://eaglebrookadvisors.com/bitwise.
