Eaglebrook Advisors Introduces Managed Bitcoin and Ethereum Separately Managed Account Strategy in Partnership with Franklin Templeton

Expanding a partnership established in 2022, Eaglebrook and Franklin Templeton set to unlock digital asset opportunities for advisors and investors

BETHESDA, Md.–(BUSINESS WIRE)–#Bitcoin—Eaglebrook, a digital asset investment platform that provides registered investment advisors (RIAs) with direct access to bitcoin and other digital assets, today announces the launch of the Franklin Templeton Digital Asset Dynamic BTC/ETH separately managed account (SMA) strategy. This strategy, which is specifically designed for RIAs and U.S.-based wealth managers, is available on Eaglebrook’s Digital Asset SMA Platform and invested assets will be custodied at Anchorage Digital.

Digital Asset SMAs offer investors a broader spectrum of assets beyond bitcoin, and with this professionally managed offering from Franklin Templeton, advisors working with high-net-worth (HNW) investors can provide an option for greater tax optimization. Unlike bitcoin exchange-traded products (ETPs) or private funds, Eaglebrook’s tax optimization strategies proactively identify opportunities to reduce or defer capital gain tax liability.

“Expanding our relationship with Franklin Templeton presents even more opportunities to bring exclusive digital asset investments to Eaglebrook’s advisors and their clients,” said Chris King, founder and chief executive officer of Eaglebrook. “Backed by Franklin Templeton’s robust digital assets research, this partnership is designed to provide an accessible and tax-efficient path to incorporating digital assets into client portfolios. Our focus remains on offering diversified investment solutions that cater to the evolving needs of advisors and their clients.”

The Franklin Templeton Digital Asset Dynamic BTC/ETH SMA is an actively managed investment vehicle which seeks to outperform a market cap-weighted portfolio comprising bitcoin and ethereum, the two largest digital assets by market cap. Franklin Templeton provides the model for the strategy to Eaglebrook on a non-discretionary basis. Advisors who plan to leverage the SMA will also have the opportunity to include an automated tax overlay.

“Franklin Templeton has been actively involved in building and investing in the digital assets ecosystem since 2018,” said Tony Pecore, SVP, director of digital asset management at Franklin Templeton. “Our newest offering, the Franklin Templeton Digital Asset Dynamic BTC/ETH strategy, capitalizes on our firm’s 75 years of investment management expertise and cutting-edge digital asset research capabilities.”

In 2022, Franklin Templeton introduced two digital asset SMA strategies via the Eaglebrook platform: the Franklin Templeton Digital Assets Core and the Franklin Templeton Digital Assets Core Capped. The Franklin Templeton Digital Assets Core strategy follows a market cap-weighted approach, investing in 10 to 15 of the largest digital assets, excluding stablecoins and meme coins; the Franklin Templeton Digital Assets Core Capped strategy adopts a similar methodology but imposes a cap on holdings of BTC and ETH, limiting each to 25 percent of the portfolio.

With an extensive network comprising more than 700 financial advisors and more than $225 million in assets under management, Eaglebrook is positioned to revolutionize client engagement strategies for the advisors it serves by offering direct ownership, automated tax optimization strategies and access to multi-asset portfolios and SMAs.

For more information about Eaglebrook, and for important disclosures, please visit eaglebrookadvisors.com.

About Eaglebrook

Eaglebrook is a crypto investment platform that provides RIAs with direct access to bitcoin and digital assets. The firm operates one of the largest SMA Platforms in the crypto market. Eaglebrook’s investment platform offers access to tax optimized Bitcoin and Ethereum separately managed accounts (SMAs) and third-party investment manager strategies held at an institutional qualified custodian.

Eaglebrook is an SEC registered investment advisor that works with over 70 RIAs and has over 700 financial advisors using its platform. The company is backed by leading wealth management executives and financial institutions including Castle Island Ventures, Brewer Lane Ventures and Franklin Templeton.

About Franklin Templeton

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,400 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and approximately $1.6 trillion in assets under management as of February 29, 2024. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.

All investments involve risk, including the loss of principal. Certain Accounts will invest in cryptocurrencies, such as, but not limited to, Bitcoin or Ethereum, as well as other digital representations of value or rights (including for investment, finance or idle cash purposes). Such assets or investments may be transferred and stored electronically, using distributed ledger technology or other technology, and may include but are not limited to any decentralized application tokens and blockchain-based tokens and other digital assets, or instruments for the purchase of such, including but not limited to token rights agreements, token warrants and other instruments (together with cryptocurrencies, “Digital Assets”). Investments in Digital Assets are subject to many specialized risks and considerations, including but not limited to risks relating to (i) immature and rapidly developing technology underlying Digital Assets, (ii) security vulnerabilities of this technology, (iii) credit risk of Digital Asset exchanges that may hold an Account’s Digital Assets in custody, (iv) regulatory uncertainty around the rules governing Digital Assets, Digital Asset exchanges and other aspects and parties involved with Digital Asset transactions, (v) high volatility in the value/price of Digital Assets, (vi) unclear acceptance of some or all Digital Assets by users and global marketplaces, and (vii) manipulation or fraud resulting from the pseudo-anonymous manner in which ownership of Digital Assets is recorded and managed.

Additional risks applicable to Digital Assets Strategies include:

Cybersecurity risk: Portfolio manager(s), service providers to the portfolios and other market participants increasingly depend on complex information technology and communications systems to conduct business functions. These systems are subject to a number of different threats or risks that could adversely affect the portfolio and their investors, despite the efforts of the portfolio manager(s) and service providers to adopt technologies, processes and practices intended to mitigate these risks and protect the security of their computer systems, software, networks and other technology assets, as well as the confidentiality, integrity and availability of information belonging to the portfolios and their investors.

Liquidity risk: Liquidity risk exists when the markets for particular securities or types of securities are or become relatively illiquid so that it is or becomes more difficult to sell the security, partially or in full, at the price at which the security was valued. Illiquidity may result from political, economic or issuer-specific events; changes in a specific market’s size or structure, including the number of participants; or overall market disruptions. Securities with reduced liquidity or that become illiquid involve greater risk than securities with more liquid markets.

Market risk: The market value of securities or other investments will go up and down, sometimes rapidly or unpredictably. Investments may decline in value due to factors that affect an individual issuer (such as the result of supply and demand) or a particular industry or sector. A security’s or other investment’s market value may also go up and down due to general market activity or other results of supply and demand unrelated to the issuer, such as real or perceived adverse economic conditions, changes in interest rates or exchange rates, or adverse investor sentiment generally.

New strategy risk: The Franklin Templeton Digital Assets Core strategy has no operating history and is being first offered to client accounts during the third quarter of 2022.

Volatility risk: Trading prices for Digital Assets have historically been highly volatile. The value of the Digital Assets held by an account could decline rapidly, including to zero. Digital Assets have not been in existence long enough to assess the volatility of market cycles with any precision and an investment in an account may turn out to be substantially worthless. Investors should be prepared for volatile market swings and prolonged bear markets.

Unlisted securities risk: Unlisted securities (i.e., securities not listed on a stock exchange or other markets and for which no liquid secondary trading market exists) may involve a high degree of business and financial risk and may result in substantial losses. The companies underlying such securities may have relatively limited operating and profit histories. Many of these companies may also need substantial additional capital to support expansion or to achieve or maintain a competitive position and there is no assurance that capital will be available to finance such needs. In the absence of a liquid trading market for unlisted securities, they will be difficult to value. It is also possible that such investments will be difficult to liquidate when desired, which may limit the ability to realize their full value. Although it is generally desirable that unlisted securities become listed in due course, there can be no assurance that this will be the case, or that sufficient liquidity for substantial shareholdings will be available following listing.

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Contacts

StreetCred PR
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Hannah Dixon

317-590-0915

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Will Ruben

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Franklin Templeton Corporate Communications
Travis Fishstein

(917) 822-185

travis.fishstein@franklintempleton.com