Eaglebrook on Wednesday announced it launched a direct indexing platform for digital assets featuring the S&P Cryptocurrency Top 10 Equal Weight Index through Eaglebrook’s separately managed accounts (SMAs).
The S&P Cryptocurrency Top 10 Equal Weight Index seeks to track the performance of the 10 largest eligible cryptocurrencies by market capitalization within the S&P Cryptocurrency Broad Digital Market Index, with each constituent equally weighted, according to Eaglebrook and S&P Dow Jones Indices.
Advisors can use Eaglebrook’s platform to build rules‑based digital asset portfolios in individual client accounts, with direct ownership and automated tax management, the firm said.
“RIAs are increasingly competing on after‑tax outcomes, and for many clients, crypto holds some of the largest unrealized gains and losses in their portfolios,” Christopher King, Founder and CEO of Eaglebrook, told Wealth Solutions Report by email.
“Because digital assets are far more volatile than stocks, they create frequent harvesting opportunities, and advisors want a way to capture that value systematically instead of leaving it on the table.”
King added, “The move toward SMAs comes down to ownership and control. Advisors want clients to own the underlying assets directly, bring existing holdings over in kind, and customize around each client’s tax situation, none of which a pooled ETF can offer. We believe direct indexing will become the standard way wealth managers implement digital assets, just as it has for equities.”
“Because digital assets are far more volatile than stocks, they create frequent harvesting opportunities, and advisors want a way to capture that value systematically instead of leaving it on the table.” — Christopher King, Founder and CEO, Eaglebrook
Summing up why today’s news is significant for advisors, he said that it, first, provides bigger tax savings for clients.
“Under current IRS rules, crypto is not subject to the wash sale rule, and the Eaglebrook platform automates tax‑loss harvesting at the individual‑asset level so advisors can deliver greater after‑tax value for clients,” King explained.
Additionally, he explained, “Clients with existing eligible crypto holdings can transfer them in kind to the Eaglebrook platform without triggering a taxable event, bringing new assets under the advisor’s management.”
Third, he went on to say, “Clients maintain direct ownership of their digital assets in a separately managed account, unlike crypto ETFs, which are pooled vehicles that don’t offer customization or individual‑asset tax‑loss harvesting.”
In a press release, King said, “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.”
“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, said in the press release.
Drinkwater added, “By facilitating access to this index via Eaglebrook’s infrastructure for direct ownership, automated tax management, in‑kind funding and portfolio customization, S&P DJI is expanding access to high‑quality, index‑based exposures for individually managed digital asset portfolios.”
Eaglebrook plans to make additional institutional indices and customized digital asset portfolios available through its new platform over time, it said.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
