Geneos Wealth Administration, a hybrid dealer/supplier and registered funding advisor with $10 billion in belongings, has added Eaglebrook, which supplies crypto-focused individually managed accounts, to its platform. The transfer will enable Geneos’ 250 advisors to entry Eaglebrook’s Bitcoin and Ethereum SMAs, in addition to the power to construct customized SMAs managed by the RIA.
The information comes simply two months after the Securities and Change Fee accepted Bitcoin ETFs for the primary time. Geneos has accepted three Bitcoin ETFs to be used on its platform, together with the Grayscale Bitcoin Belief ETF, the iShares Bitcoin Belief and ProShares Bitcoin Technique ETF, which invests in Bitcoin futures. To put money into the ETFs, Geneos advisors are required to take a seamless training course on the brand new merchandise and so they should signal documentation indicating they learn the prospectuses.
Dean Rager, chief working officer at Geneos, says the Eaglebrook partnership supplies one other possibility and advantages a shopper wouldn’t get in an ETF, resembling direct possession of digital belongings and automatic tax loss harvesting.
“Lastly, the SEC has accepted ETFs for the plenty,” mentioned Dean Rager, chief working officer at Geneos. “However there are nonetheless purchasers which will need to personal the true deal. And this may enable us to have somewhat means to resolve a few of these points versus simply sending them off into the unknown.
“Shoppers can have some handholding after they go into this new asset class, versus simply wading in on their very own,” Rager mentioned.
Rager has been testing the Eaglebrook platform together with his personal account for about three years.
“I discovered it a really easy-to-use platform,” he mentioned. “It’s an entire lot safer than going out and attempting to do your personal tokens and wallets.”
He likes the truth that the belongings are held at Gemini, Eaglebrook’s custodian, and that clients obtain month-to-month statements, identical to with another brokerage account.
“Versus purchasers simply going out and attempting to do their very own Coinbase account or another factor, we now have the power to assist them out in a way more advisory-friendly kind platform,” Rager mentioned.
However Rager mentioned it’s nonetheless a fledgling asset class, and Geneos at present has fewer than 15 advisors investing in cryptocurrency on behalf of purchasers. Consumer curiosity is coming from high-net-worth people with $20 million or extra in investible belongings, who could put $10,000 or $100,000 into crypto belongings.
“It’s immaterial to their total web value, however they’re nonetheless eager to test it out, so to talk,” he mentioned.
Eaglebrook, which counts Dynasty Monetary Companions, Mariner Wealth Advisors and Halbert Hargrove World Advisors amongst its purchasers, works with greater than 700 advisors and has greater than $210 million in belongings below administration, in line with the agency.
