Major financial firm Mariner Wealth Advisors will start offering the Eaglebrook Bitcoin SMA to the clients who show interest in the crypto asset.
According to a Nov. 17 announcement, the international wealth advisory firm with over $35 billion in assets under advisement will allow financial advisors to allocate client funds to Bitcoin (BTC). The firm’s CEO and president Marty Bicknell commented:
“We are excited to offer this new solution to clients of Mariner Wealth Advisors where Bitcoin fits into their overall wealth plan. […] Our desire to find new solutions is always driven by client need and we are looking forward to working with Eaglebrook on this new endeavor.”
In the announcement, the firm explains that financial advisors’ demand for Bitcoin has increased due to current trends, which include “growth in investment demand from millennials and institutional investors, Bitcoin’s potential as an inflation hedge in response to monetary stimulus and the asymmetric upside of the investment.” Eaglebrook Advisors CEO Christopher King explained that the product in question is meant for institutions like Mariner:
“Our investment solution, designed to meet the unique needs of firms such as Mariner Wealth Advisors, makes it easy for their advisors to allocate to Bitcoin. We expect cryptocurrency adoption to continue and the market to mature, driving even greater demand.”
Eaglebrook Advisors leverages the custody service of United States-based cryptocurrency exchange Gemini to custody the assets backing its product. The post explains that the Bitcoin is directly owned by the customer and stored in Gemini’s systems. The exchange’s chief operating officer Noah Perlman said that “these types of solutions are critical to provide more financial advisors exposure to digital assets.”
As Modern Consensus reported in mid-January, Gemini launched its own in-house insurance unit to protect client’s funds against loss. Since then, any losses of up to $200 million for customers of the firm’s Gemini Custody solution are covered by the firm’s insurance subsidiary.