6 Things to Think About Before Using an SMA for Digital Assets
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Interest in crypto continues to remain strong among financial advisors, with 73% currently investing in digital assets, according to a recent Fidelity Digital Assets survey of institutional investors. But when offering digital assets such as crypto and NFTs to their clients, advisors are faced with an important question: how will I manage those assets?
Generally, there are two approaches: do it yourself (DIY), or using a Separately Managed Account (SMA), where a third-party manager takes charge of those assets. There’s lots to consider when choosing between the two. Here’s a rundown of the risks and benefits that go along with using an SMA:
1. Expertise and Professional Management
One potential advantage of using an SMA is gaining access to the knowledge base and execution capabilities of a specialized asset manager. From market trends and technological advancements to identifying investment opportunities, these professionals understand the intricacies of digital assets. They also possess the means to act swiftly upon the market intelligence. SMAs also provide advisors with valuable time savings, letting them put a greater focus on client relationships and personalized advice.
Scammers spun up at least 7,905 blockchain wallets in May to collect crypto they steal from ordinary users, according to a blockchain security company Forta Network.
Forta, which has recently launched its own token, operates a network of bots that detect various kinds of scams on Ethereum, Binance Smart Chain, Polygon, Optimism, Avalanche, Arbitrum and Fantom blockchains.
Christian Seifert, researcher-in-residence at Forta who previously worked at Microsoft’s security research division, told CoinDesk that Forta’s algorithms can detect various kinds of anomalous behavior while scanning transactions on blockchains.
Some of those anomalies are attacks on users’ wallets.
FTX CEO John J. Ray III told The Wall Street Journal that the company “has begun the process of soliciting interested parties” to reboot its international crypto exchange.
CoinDesk asked crypto metrics firms, market analysts and professional traders to help illuminate the mysteries around crypto trading and why time matters.
Disclaimer: The information contained in this newsletter, and any information linked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. You should seek additional information regarding the merits and risks of investing in any cryptocurrency or digital assets.
