Eaglebrook, Franklin Templeton Launch Bitcoin/Ethereum SMA

Eaglebrook, a crypto investment platform that provides RIAs with direct access to bitcoin and digital assets, has partnered with Franklin Tempelton to launch the Franklin Templeton Digital Asset Dynamic BTC/ETH separately managed account (SMA) strategy.

The strategy, which is designed for RIAs and U.S.-based wealth managers, is available on Eaglebrook’s Digital Asset SMA Platform.

Unlike the spot Bitcoin ETFs that were approved by the SEC in January, the company’s new SMA allows advisors who serve high net worth clients to offer a means of diversifying into cryptocurrency assets. It also provides better tax optimization, direct ownership, and institutional custody through crypto bank Anchorage Digital.

The Franklin Templeton Digital Asset Dynamic BTC/ETH SMA is actively managed and aims to outperform a market cap-weighted portfolio comprising bitcoin and ethereum. Advisors who plan to leverage the SMA can also include an automated tax overlay.

“Expanding our relationship with Franklin Templeton presents even more opportunities to bring exclusive digital asset investments to Eaglebrook’s advisors and their clients,” said Chris King, founder and CEO of Eaglebrook.

In 2022, Franklin Templeton introduced two digital asset SMA strategies through the Eaglebrook platform: the Franklin Templeton Digital Assets Core and the Franklin Templeton Digital Assets Core Capped.

The Franklin Templeton Digital Assets Core strategy follows a market cap-weighted approach, investing in 10 to 15 of the largest digital assets, excluding stablecoins and meme coins; the Franklin Templeton Digital Assets Core Capped strategy adopts a similar methodology but imposes a cap on holdings of BTC and ETH, limiting each to 25% of the portfolio, the firm said.

Bethesda, MD-based Eaglebrook has over 700 financial advisors and more than $225 million in assets under management.