Somewhere between the Coinbase hawk and the institutional Bitcoin whale stands a quickly emerging class of top-end retail investors pressurizing their fund managers to be a part of the bull run.
The retail investors’ calls rose sufficiently loud for Mariner Wealth Advisors to show some action. So presently, the registered investment advisory (RIA) whose community of financial advisors (FA) is working independently and handling $29 billion, is providing an opportunity to its 23,000 clients a way to leap in.
On Tuesday, Mariner Wealth introduced its 346 FAs that will shortly own entry to the bitcoin markets via a separately managed account (SMA) arranged by a crypto agency, Eaglebrook Advisors. Mariner FAs will be able to trade bitcoin through Bitcoin SMA, safeguard it, and work out the tax burdens in the client’s name once entirely launched this year.
Traditional Companies Lack infrastructure for Bitcoin Investments
Christopher King, the CEO of Eaglebrook stated to CoinDesk, that the association is a primary step in tapping a large capable class of investors valued between $5 million and $10 million that according to the King didn’t participate in the record-breaking bull run of 2017.
Further, he said that these top-end retail kinds, direct their trades on bonds, stocks, and funds via FAs, but more frequently than not, the conventional companies behind these FAs fail to have the infrastructure required for the execution of bitcoin.
King stated, “No one was building for the independent registered investment advisor market that I know manages trillions of dollars.” It is estimated that RIAs handles more than $4.7 trillion in client assets, according to TD Ameritrade.
Moreover, he had set up an SMA for FAs to access the bitcoin markets, purchase, keep, safeguard, vend, and work out tax burdens similarly done for other asset classes. It took him a year to incorporate the SMA with Mariner Wealth’s already existing portfolio reporting systems. Further, King said that the thought was to make bitcoin apportionment a flawless part of FAs’ wealth administration strategy.
The Eaglebrook CEO stated, “It’s really important for including bitcoin in [clients’] wealth plan and estate plan, as well as allowing advisers to bill on the assets, the same way they would for an Apple stock or Tesla stock or Amazon,”
At launch, Eaglebrook is providing services for bitcoin custody by Gemini Trust corporation. As of Tuesday, Mariner is Eaglebrook SMA’s sole customer.
King mentioned he’s hoping that other funding advisories will sign up too. “It’s a custom solution, but almost every RIA is structured like Mariner,” Eaglebrook CEO said. “If it works for them, it’s gonna work for basically the top hundred, top thousand” RIAs in the country.