From MarketWatch:

The SEC’s approval of spot Bitcoin ETFs has brought in over $10 billion in inflows since January 10, boosting Bitcoin and the market. Retail investors benefit from simplified access to secure Bitcoin without managing private keys. As interest in crypto rises, institutions must consider how to meet client demand for digital asset exposure, including through crypto separately managed accounts (SMAs).

Crypto SMAs offer direct ownership of digital assets beyond Bitcoin, allowing institutions to tailor portfolios to meet client demands. Qualified custodians are crucial for ensuring regulatory compliance and asset security. SMAs also provide flexibility and tax advantages, enabling diversified portfolios with professional management tailored to individual goals and market conditions.

Wealth managers, family offices, and RIAs should weigh the benefits of spot Bitcoin ETFs and crypto SMAs in providing safe, compliant investment options. Considering asset support, portfolio allocation, and tax status will help institutions make informed decisions on utilizing ETFs, SMAs, or a combination of both for digital asset participation. More choices for consumers and institutions in the digital asset class strengthen the ecosystem overall.



Read more at MarketWatch: Bitcoin ETFs and Crypto Separately Managed Accounts: What RIAs Need to Know