Crypto SMA firm Eaglebrook rolls out Tamp offering

Crypto SMA firm Eaglebrook Advisors is pivoting its business toward a turnkey asset management program (Tamp) model, where advisors can invest on behalf of their clients in digital asset portfolios offered by various asset managers. The firm announced on Thursday that it will add to its platform two digital asset SMAs from Franklin Templeton; the asset manager made an investment of undisclosed size in Eaglebrook earlier this year.

The Franklin Templeton Digital Assets Core SMA is a market cap-weighted portfolio comprising 10 to 15 large cryptocurrencies. Other than bitcoin and ethereum, the firm did not reveal which digital assets the strategy invests in, only noting that it excludes stablecoins and ‘meme coins.’ The other SMA contains the same assets but caps holdings of bitcoin and ethereum at 25% of the portfolio each. Rebalancing will occur monthly. The two SMAs will become available on Eaglebrook’s platform in mid-October. Like Eaglebrook, assets in Franklin Templeton’s SMAs are custodied with Gemini. Models for Franklin Templeton’s two crypto SMAs are managed by senior vice president and director of digital asset management Tony Pecore.

‘These new digital asset SMA strategies give advisors and their clients the opportunity to gain exposure to the digital asset ecosystem, while supporting advisors through professional management and oversight,’ Pecore stated.

Eaglebrook chief executive Christopher King told Citywire he sees the Tamp offering as ‘the next evolution of our business.’ Eaglebrook previously offered advisors a flagship crypto portfolio comprising 70% bitcoin and 30% ethereum – the two largest digital assets by market cap, and the two Eaglebrook is most bullish on, King said. The Tamp offering will broaden out that suite of available products and make it easier for advisors to oversee and bill on clients’ crypto holdings beyond bitcoin.

‘We’ve been working towards this since day one,’ King said. ‘We really wanted to make advisors feel comfortable with allocating to the two largest assets – bitcoin and ether – before going into more professionally managed, actively managed, multi-asset strategies, which is what we’re doing with Franklin Templeton here. We believe it’s a major inflection point in this market, as it’s the first time a multi-trillion-dollar asset manager has actually launched a strategy where they’re directly managing these assets.’

Within Eaglebrook’s platform, advisors will be able to select Franklin Templeton’s SMAs from the same dashboard where they select Eaglebrook’s flagship bitcoin/ether SMA. The advisor onboards a client account, selects the desired strategy and wires over the money. Once money is invested, Eaglebrook’s platform begins feeding transaction data back into the advisor’s portfolio reporting system – be it Orion, Black Diamond, Addepar or something else – within eight hours.

Eaglebrook plans to add more digital asset SMAs from other asset managers to its platform later this year.

While much of Eaglebrook’s focus for the rest of the year will be on growing out its Tamp offering, King said he’s still hard at work courting RIA clients. Having signed deals with 75 firms comprising more than $500bn in aggregate AUM, including heavyweights like Dynasty Financial Partners and Mariner Wealth Advisors (Mariner’s Marty Bicknell is an investor in Eaglebrook), King now has his sights set on large RIA platforms and networks.

‘We want to work with Rockefeller, Hightower and NewEdge,’ King said. ‘We focus on educating them, explaining why the low-cost structure with professional management and customization is really the end-to-end solution that’s holistic, as opposed to just going into a private fund or buying GBTC [the Grayscale Bitcoin Trust]. This is really what’s best for their clients. And when you’re a fiduciary investment advisor, you have to select the solution or vendor that you know is in your client’s best interest.’

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