Eaglebrook, a digital asset investment platform that provides registered investment advisors (RIAs) with direct access to bitcoin and other digital assets, announces the launch of the Franklin Templeton Digital Asset Dynamic BTC/ETH separately managed account (SMA) strategy.
This strategy, which is specifically designed for RIAs and U.S.-based wealth managers, is available on Eaglebrook’s Digital Asset SMA Platform and “invested assets will be custodied at Anchorage Digital.”
Digital Asset SMAs offer investors “a broader spectrum of assets beyond bitcoin, and with this professionally managed offering from Franklin Templeton, advisors working with high-net-worth (HNW) investors can provide an option for greater tax optimization.”
Unlike bitcoin exchange-traded products (ETPs) or private funds, Eaglebrook’s tax optimization strategies “proactively identify opportunities to reduce or defer capital gain tax liability.”
Chris King, founder and chief executive officer of Eaglebrook, said:
“Expanding our relationship with Franklin Templeton presents even more opportunities to bring exclusive digital asset investments to Eaglebrook’s advisors and their clients. Backed by Franklin Templeton’s robust digital assets research, this partnership is designed to provide an accessible and tax-efficient path to incorporating digital assets into client portfolios. Our focus remains on offering diversified investment solutions that cater to the evolving needs of advisors and their clients.”
The Franklin Templeton Digital Asset Dynamic BTC/ETH SMA is “an actively managed investment vehicle which seeks to outperform a market cap-weighted portfolio comprising bitcoin and ethereum, the two largest digital assets by market cap.”
Franklin Templeton provides the model “for the strategy to Eaglebrook on a non-discretionary basis. Advisors who plan to leverage the SMA will also have the opportunity to include an automated tax overlay.”
Tony Pecore, SVP, director of digital asset management at Franklin Templeton said:
“Franklin Templeton has been actively involved in building and investing in the digital assets ecosystem since 2018. Our newest offering, the Franklin Templeton Digital Asset Dynamic BTC/ETH strategy, capitalizes on our firm’s 75 years of investment management expertise and cutting-edge digital asset research capabilities.”
In 2022, Franklin Templeton had “introduced two digital asset SMA strategies via 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 percent of the portfolio.”