Dynasty Financial Partners announced Tuesday it has partnered with an investment management firm to bring RIA-friendly cryptocurrency investments to its network of 46 firms and 160 financial advisors.
Washington, D.C.–based Eaglebrook Advisors is a two-year-old crypto-focused investment firm that serves registered investment advisors and financial advisors, running separately managed accounts for clients in bitcoin and other digital assets.
"The demand for bitcoin and other digital assets only continues to grow, and the addition of Eaglebrook's SMAs 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 investment at Dynasty.
Dynasty has $60 billion assets on its platform and $30 billion with its turnkey asset management platform.
The coins are custodied at Gemini Trust Company, giving advisors “seamless client onboarding, daily liquidity and tax optimization,” with their digital currency investments, according to Dynasty. What’s more, Eaglebrook’s platform integrates with the advisor's technology and workflow, creating abilities to model, advise on, report and bill on those digital assets.
Eaglebrook has no minimum account size for its SMAs.
SMAs overcome some of the challenges advisors have in accessing cryptocurrency for their clients. Currently, advisors can either direct clients to an exchange like Coinbase without any integration into their portfolio trading or reporting platforms. Advisors can invest in over-the-counter closed-end funds that often come with high fees and tracking errors, or put clients into private placements that come with their own challenges for liquidity and integrating into an advisory workflow.
A handful of asset managers, including Fidelity and VanEck, have applications pending at the Securities and Exchange Commission to launch cryptocurrency ETFs, which will much more easily integrate those assets into clients' portfolios.
Dynasty is the second platform that has given advisors access to Eaglebrook's SMAs. In 2020, Mariner Wealth Advisors helped launch the investment manager's offer to its 344 advisors who collectively oversee $35 billion in AUM.