ARK Investment Launches Its First Crypto Managed Account for RIAs

Independent managed account provider Eaglebrook Advisors has announced a partnership with Ark Invest to develop the ARK Cryptocurrency Strategy and ARK Crypto Asset Strategy.

Cathie Wood’s investment firm ARK Investment is launching its first crypto Separately Managed Account (SMA) for Registered Investment Advisors (RIAs).

SMAs are portfolios created by financial advisors or investment firms for individual investors, and the partnership will allow ARK to expand its services beyond exchange-traded funds (ETFs).

Cathie Wood, Founder, CEO, and Chief Investment Officer of ARK said:

“Through our partnership with Eaglebrook, we now can offer actively managed crypto strategies to the wealth management industry. The strategies will be separately managed accounts (SMAs) designed to meet the needs of financial advisors, wealth managers, and their clients by offering direct ownership, low minimums, and portfolio reporting integration among other benefits.

Advisors can differentiate themselves and add to a client’s diversification by adding this new asset class to their portfolios. Our partnership combines Eaglebrook’s best-in-class technology-driven investment platform with ARK’s established digital asset experience to deliver a differentiated, turnkey investment solution.”

The partnership will see both crypto strategies actively managed by Cathie Wood’s Ark Invest available to clients of registered investment advisors as separately managed accounts.

ARK and Eaglebrook are jointly developing the ARK Cryptocurrency Strategy and ARK Crypto Asset Strategy, where the Cryptocurrency Strategy primarily invests in Bitcoin and Ethereum, and Ark’s Crypto Asset Strategy is designed to invest in smart contract networks, DeFi and Web3, infrastructure and Top 10 – 20 coins related to scaling.

“It’s a game-changer for the industry and another sign of mainstream adoption,” said Roddy Chisholm, chief operating officer at Eaglebrook Advisors.

In early September, Ark Investment Management LLC, owned by Cathie Wood, expanded its research arm as it seeks deeper development in various fields, including blockchain and AI.

Image source: Shutterstock


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Dynasty Financial, Eaglebrook Partner To Bring Bitcoin To RIAs

Dynasty Financial Partners and Eaglebrook Advisors are bringing bitcoin infrastructure to investment advisors, a potential boon for adoption.

Today, wealth management platform provider Dynasty Financial Partners announced a partnership with investment manager Eaglebrook Advisors to bring bitcoin investment infrastructure to its network of nearly 50 Registered Investment Advisors (RIAs).

Eaglebrook’s platform integrates with many major portfolio management tools used by wealth management firms across the United States, which will now allow advisors to model, bill and advise clients on Bitcoin within a unified ecosystem.

“The demand for bitcoin and other digital assets only continues to grow, and the addition of Eaglebrook’s SMAs [separately managed accounts] to our network provides advisors with an efficient way to obtain safer, customized access to this emerging asset class.” said Nick Gerace, senior vice president of investments at Dynasty Financial Partners, in the release.

Dynasty’s network of RIAs manages more than $50 billion in assets.

“Our SMA platform creates a simplified end-to-end bitcoin and digital asset investment experience for RIAs and advisors,” said Christopher King, CEO of Eaglebrook Advisors, per the release. “We are proud to partner with Dynasty as the leading independent platform in the RIA space to enable more advisors throughout the country to give their clients the benefits of integrated and secure access to bitcoin and digital assets. To me, this partnership is further validation of Eaglebrook’s business model and the opportunity for digital assets as an asset class today and in the future.”’

Today’s announcement demonstrates the growing trend of independent wealth management firms responding to client demand for bitcoin. A 2020 Bitwise survey of financial advisor attitudes towards cryptocurrency assets revealed that 76% of financial advisors reported receiving questions about such assets from clients and 72% thought clients may be investing in cryptocurrency on their own, outside of an advisory relationship. Those were significantly higher than the percentage of advisors planning to allocate portions of their clients’ portfolios to cryptocurrency, which was 13% (up from 6% the year before).

Bitcoin Magazine spoke with the CEO of an RIA with just over $2 billion in assets under management this morning who confirmed this trend.

“Over the past year, dozens of our high-net-worth clients have come into the office to ask our advisors about bitcoin,” the long-time financial advisor said. “From the conversations I’ve had, this phenomenon — more and more RIA clients wanting bitcoin, and advisors seeking ways to assist them — is widespread.” 


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