Valkyrie Funds, a US-based alternative asset management firm, announced on Tuesday the launch of a new Valkyrie Risk Managed Independently Managed Account (VSMA) platform that aims to enable financial advisors, asset managers funds and other financial service providers offer digital assets. investments to their clients.

Valkyrie SMA targets financial advisors, family offices, and other financial institutions with the hope of helping these financial professionals manage digital assets on behalf of clients or introduce these products to their clients.

The Valkyrie SMA will initially support three active strategies, such as a strategy focused only on Bitcoin (BTC), another strategy dedicated to investing in Bitcoin (BTC) and Ether (ETH), and another strategy focused on a more diversified option (Bitcoin (BTC)). , Ether (ETH), Solana (SOL), Polygon (MATIC), and Polkadot (DOT).

Valkyrie Funds Managing Director John Key commented on the development: “SMAs will build on Valkyrie research to rebalance positions for downside protection and upside exposure.”

SMA is a form of financial wrapper that allows pools of assets to be structured and sold as a single security. In this case, the cryptocurrencies are wrapped in an SMA.

Unlike exchange-traded funds (ETFs) and mutual funds, where investors own shares of the fund rather than the underlying securities, the securities in an SMA are owned directly by the investor. SMAs offer customization not available with ETFs and mutual funds, and therefore can more closely reflect an investor’s risk tolerance, goals, and other needs. Crypto assets held in an SMA are placed with a qualified custodian.

In In the case of Valkyrie, while its SMAs’ Bitcoin and BTC/ETH accounts aim to hold at least 50% of the portfolio in those assets, the Diversified SMA targets a minimum 40% position in digital assets, with the remaining assets parked in cash. Each of the three accounts has minimum investments of $25,000 and has a management fee of 150 basis points. Gemini is the custodian of the SMAs.

Valkyrie SMAs will allow these financial providers to design and manage custom crypto trading strategies for clients and manage them from a single platform.

Valkyrie is now the latest asset management firm to announce crypto SMA plans after Coinbase, Ark Invest, Bitwise, and Franklin Templeton launched their separate managed account offerings this year.

In a recent survey, almost half of all financial advisors (45%) revealed that they intend to offer crypto assets in response to client demand. On top of that, 80% of advisors revealed that clients of all ages have asked them about digital assets, but only 14% use or recommend digital assets.

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