Eaglebrook launched direct indexing capabilities for digital assets, enabling financial advisors to offer clients rules-based cryptocurrency portfolios through separately managed accounts.
At launch, clients can access the S&P Cryptocurrency Top 10 Equal Weight Index through Eaglebrook’s SMA infrastructure.
The index seeks to track the 10 largest eligible cryptocurrencies by market capitalization within the broader S&P Cryptocurrency Broad Digital Market Index.
Each constituent is equally weighted.
Eaglebrook said the launch represents the wealth management industry’s first direct indexing capability specifically designed for digital assets.
The platform allows investors to directly own the underlying cryptocurrencies rather than accessing them through a pooled investment vehicle.
That structure enables advisors to combine institutional index methodology with account-level customization and tax management.
Eaglebrook’s platform can automatically identify tax-loss harvesting opportunities at the individual asset and client-account level.
The company said this can provide advisors with additional opportunities to generate tax alpha for clients holding digital assets.
The direct ownership model also supports in-kind funding.
Clients with eligible cryptocurrency holdings can transfer those assets directly into a managed account rather than liquidating them before entering the strategy.
Advisors can also use the platform to provide diversified exposure to digital assets without manually selecting and managing individual cryptocurrencies.
Eaglebrook plans to add more institutional indices and customized digital asset portfolios to its direct indexing platform over time.
KEY QUOTES:
“Our rollout of direct indexing for digital assets speaks to the tremendous demand we have seen across wealth managers who are looking for greater tax alpha and diversification for their clients holding digital assets. With these expanded capabilities, advisors on our platform can now seamlessly offer advanced tax management while retaining direct control of the underlying assets.”
Christopher King, Founder and CEO of Eaglebrook
“We are pleased to provide the S&P Cryptocurrency Equal Weight Index to Eaglebrook to expand how market participants may implement transparent, rules-based digital asset strategies within separately managed accounts.”
Cameron Drinkwater, Chief Product and Operations Officer at S&P Dow Jones Indices
