US asset management giant Franklin Templeton continues to expand its presence in the cryptocurrency field. After launching a Bitcoin spot ETF and applying for an Ethereum spot ETF, the company announced on Tuesday the launch of a Bitcoin/Ethereum Separately Managed Account (SMA) targeting professional investors.
With over $1 trillion in assets under management, Franklin Templeton aims to provide investors with greater customization in asset diversification and tax optimization strategies through the Franklin Templeton Digital Assets Dynamic BTC/ETH SMA. This actively managed product aims to outperform a market-cap-weighted portfolio of Bitcoin and Ethereum. The product will be available to registered investment advisors (RIA) and other US wealth management firms on the SMA platform of digital asset investment platform Eaglebrook Advisors, with Anchorage Digital serving as the asset custodian.
In 2022, Franklin Templeton previously launched two digital asset SMAs on the Eaglebrook platform, namely 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 the 10 to 15 largest cryptocurrencies excluding stablecoins and meme coins. The Franklin Templeton Digital Assets Core Capped strategy employs a similar approach but sets the allocation cap for Bitcoin and Ethereum at 25% of the portfolio.
Chris King, founder of Eaglebrook, highlighted that the main difference between cryptocurrency SMAs and Bitcoin spot ETFs lies in tax optimization and portfolio customization. Through SMAs, clients can directly hold Bitcoin and digital assets, enabling them to utilize automated tax-loss harvesting strategies to reduce or defer tax obligations.
Eaglebrook, according to the press release, is a cryptocurrency investment platform that offers RIAs the opportunity to gain direct exposure to Bitcoin and digital assets. It operates one of the largest SMA platforms in the cryptocurrency market, providing tax-optimized Bitcoin and Ethereum SMAs and third-party investment manager strategies held by institutional-grade custodians. Eaglebrook is a registered investment advisor with the SEC, collaborating with over 70 RIAs and being used by over 700 financial advisors. The company has garnered support from top wealth management executives and financial institutions, including Castle Island Ventures, Brewer Lane Ventures, and Franklin Templeton.