Crypto for Advisors: Crypto Reserves and Advisors

In today’s crypto for advisors, Ashton Chaffee, head of Securitize for Advisors, takes us through the evolution of crypto investing for advisors and the tools and models available.

Then, Layne Nadeau from NVAL answers questions about liquidity and tax calculations for tokenized assets in Ask an Expert.

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- Sarah Morton

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The Missing Link in Advisors’ Crypto Strategies

For many financial advisors, the ability to offer digital assets has moved from a fringe consideration to a necessary component of their clients’ portfolios. Yet, even in conversations we have at conferences like FutureProof in Miami, a conference designed for long-term thinkers, we still encounter hesitation. Advisors want to serve their clients with innovative investment solutions, but they also want structures that align with traditional asset management principles. The good news? The rise of crypto model strategies offers a seamless way to integrate digital assets into portfolios — without reinventing the wheel.

Bridging Traditional and Digital Investing

Recent data from the 2025 Institutional Investor Digital Assets Survey by Coinbase and EY-Parthenon signals that major institutions are beginning to treat crypto as a fundamental part of their portfolios. According to the study, 59% of institutional investors plan to allocate over 5% of their AUM to cryptocurrencies and nearly 70% view crypto as the biggest opportunity to generate attractive risk-adjust returns. Almost 80% expect the asset class to rise in value.

With this outlook, ignoring crypto altogether not only risks underperformance over time — it raises the question of whether clients who aren’t allocated to the asset class are truly being served in a future-focused way. If you're not allocating to digital assets, you're essentially shorting the long-term growth of the crypto economy.

The overarching narrative around digital assets is shifting quickly. With national-level conversations emerging around bitcoin as a store of value — think "Strategic Bitcoin Reserve" — it’s clear that digital assets are no longer speculative sideshows. They’re becoming foundational. If a Strategic Bitcoin Reserve is good enough for our country, shouldn't it at least warrant consideration for client portfolios?

Of course, knowing where to start can be overwhelming. For many advisors, the prospect of keeping up with day-to-day developments of dozens of tokens is unrealistic. That’s why an increasing number of advisors are borrowing a concept from traditional finance: Separately Managed Accounts (SMAs).

Why Crypto Model Strategies?

Advisors may utilize structured strategies to manage crypto allocations effectively. That’s where crypto Separately Managed Accounts (SMAs) come into play. These professionally managed investment solutions provide:

• Expert Management – Built by experienced digital asset managers, these strategies take the guesswork out of crypto investing.
• Diversification – Exposure beyond bitcoin and ether, incorporating a broader range of digital assets.
• Direct Ownership – Unlike ETFs or trusts, crypto SMAs provide direct exposure, meaning clients own the actual tokens.
• Flexible Approaches – Passive, active, and tactical strategies allow advisors to align crypto exposure with varying client risk profiles.

For advisors hesitant to navigate the complexities of digital asset management, SMAs offer a bridge between traditional portfolio management and the rapidly evolving crypto space.

Passive vs. Active: Choosing the Right Crypto Strategy

Not all crypto investors are alike. Some want broad, consistent exposure to the market, while others seek dynamic strategies that capture alpha.

Passive crypto SMAs may cater to long-term believers in the asset class, generally avoiding the pitfalls of reactionary trading during market swings by relying on consistent exposure. This rules-based approach removes emotional decision-making and generally leads to reduced trading fees due to lower transaction volume.

On the other hand, active crypto SMAs may allow professional managers to make real-time allocation decisions. Given the speed of crypto market movements, an active approach can help capitalize on trends and mitigate risks, ensuring portfolios remain aligned with broader investment objectives.

The Bottom Line for Advisors

Crypto and digital assets deserve consideration for inclusion in client portfolios. While buying assets one by one does necessitate research and familiarity with the market, crypto model strategies provide structured, professionally managed exposure and give advisors a familiar template through which to access this newer asset class. And as client demand for crypto continues to grow, the ability to offer these solutions may soon become less of a competitive advantage and more of an expectation.

- Ashton Chaffee, Head of Securitize for Advisors

Ask an Expert

Q: How does liquidity differ for tokenized markets?

A: Tokenization can offer significantly enhanced liquidity compared to traditional markets through fractional ownership, allowing investors to trade smaller portions of high-value assets like real estate or private equity. Tokenized assets also offer 24/7 trading, requiring less capital and fewer intermediaries. This means faster settlement, reduced fees, and lower barriers to entry.

However, actual liquidity requires active markets with buyers and sellers, and some tokenized assets may lack sufficient market depth. Investors should evaluate each tokenized asset's specific marketplace dynamics rather than assuming tokenization automatically guarantees liquidity.

Q: How are unrealized returns calculated for tokenized assets?

A: Unrealized returns follow the basic formula: Unrealized Return = Current Market Value − Original Purchase Price

Tokenized assets follow the same calculation principles as traditional investments, but their 24/7 trading nature and potential for volatility require more frequent monitoring. These portfolio performance insights help clients understand their position before making decisions about holding or selling assets (tokenized or not).

Q: How do I account for and measure different types of tokenized investments at fair value?

A: Tokenized assets are categorized based on their characteristics with appropriate fair value measurements and accounting treatments, including changes reflected in net income, or may need to be classified on whether they represent financial or non-financial assets.

For fungible tokenized assets (cryptocurrencies), fair value is derived using market prices from the most active exchanges, with value changes impacting income statements.

Many tokenized (real-world) assets are non-fungible (NFTs, necessitating valuation methodologies that are significantly more complex.

Accounting providers generally have service providers that provide independent valuation services to establish defensible fair values for tokenized assets. 

- Layne Nadeau, CEO, Nval

Keep Reading

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• Gamestop raised $1.5 billion via convertible note sales to move forward their bitcoin acquisitions.
• Texas’s bitcoin bill took another step forward and it includes provisions for local-level investments.