Valkyrie Raises Funds to Offer Crypto SMA, Challenge Box and Franklin Templeton

Crypto Asset Management Valkyrie Funds said on Tuesday it will offer its own managed account (SMA)
aims to give traditional investors exposure to a wide range of crypto portfolios.

The new SMA service will initially support three operational strategies: bitcoin (BTC), bitcoin and ether (BTC) alone, as well as bitcoin, ether, SOL, and MATIC. Valkyrie will make its SMAs available to financial advisors, family offices, and other financial institutions that can then pitch to their clients.

Valkyrie is now the third asset manager to announce a crypto SMA plan after Ark Invest and Franklin Templeton, a sign that the crypto products industry is maturing with Wall Street involvement. Ark and Franklin Templeton are working with Eaglebrook Advisors for their SMAs.

SMAs are investment products that give investors direct ownership of the underlying asset, even if the positions are managed by a company – in this case, Valkyrie. Valkyrie Fund CEO John Key told CoinDesk that SMAs will rely on Valkyrie research to rebalance positions to protect against downside and potentially upside.

“Other products are generally passive or subject to some sort of metric, so we think we’re really adding value using our research,” says Key.

Key explains: The market has never seen a crypto SMA before as crypto is still “a fairly new asset class,” with only a handful of companies building traditional products with crypto exposure. , Key explained. Direct investing means there is a market for SMAs, he noted.

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