Bitwise Asset Management, the largest crypto index fund manager globally, has announced in a press release the launch of its first separately managed account (SMA) for financial advisors that will be able to provide their clients direct investment in the two largest cryptocurrencies globally: bitcoin and ether.
The Bitwise BTC/ETH Equal Weight SMA will offer equal-weighted positions in bitcoin and ether, two major crypto assets that have distinct use cases within crypto. Bitcoin continues to be the largest and most popular cryptocurrency and is the current leading store of value within crypto assets. Ethereum remains widely regarded as the most popular platform for its smart contracts, which are a fundamental core of the decentralized finance (DeFi) movement, non-fungible tokens (NFTs), and stablecoins.
“In crypto, what you’re invested in is critical, but perhaps equally important is how you’re invested,” said Bitwise chief distribution officer Mick McLaughlin, in the press release. “In the conversations we have every day with hundreds of advisors across the country, one thing has become clear: They have a strong desire for a vehicle that both gives their clients smart crypto exposure and fits into their workflows. An intelligently structured SMA strategy is a great solution for many advisors.”
The SMA's Structure and Availability
The SMA will rebalance quarterly and offers financial advisors a more streamlined option for incorporating crypto exposure into their portfolios and investment plans via portfolio rebalancing, account planning, fee collection and billing, and more. Clients will be able to move their crypto assets from their digital wallets to the SMA while still retaining direct ownership, allowing oversight and reporting by the advisor without incurring a tax event.
“Five years ago, few people held crypto, and virtually all who invested did so in digital wallets outside the oversight of a professional,” said Bitwise CEO Hunter Horsley, in the press release. “But since then, crypto adoption has skyrocketed, which has reinforced the importance of crypto being managed as part of a larger, coordinated plan with professional oversight. With crypto as our sole focus, we at Bitwise strive to provide the broadest suite of strategies and vehicles to help investors access the opportunities in the space in the way best suited to them. We’re excited to add this new strategy today and meet this growing need."
The Bitwise BTC/ETH Equal Weight SMA is offered through the BITRIA platform (recently acquired by Gemini, a leading crypto custodian), and is available to accredited as well as non-accredited investors through their financial advisors. Crypto assets are held directly by Gemini, and there are no investment minimums into the SMA.
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