Separately Managed Accounts (SMAs) offer notable advantages for institutional investors looking to invest in cryptocurrencies compared to ETFs. While ETFs have become popular among new crypto investors, SMAs provide direct ownership of assets, allowing for greater customization of portfolios and tailored risk management. 

This direct control also facilitates more effective tax strategies and access to a broader range of digital assets beyond just Bitcoin or Ether. Unlike ETFs, which are passive, SMAs benefit from active management, enabling investors to adjust their portfolios in response to market changes and potentially achieve higher returns. 

Additionally, SMAs operate in the 24/7 crypto market, avoiding the limitations of traditional market hours and minimizing the risk of price gaps. For high-net-worth individuals and institutions, the flexibility, personalized approach, and potential for outperformance make SMAs an increasingly appealing option over ETFs.

Finsum: Being able to have access to a cryptocurrency 24/7 is a critical advantage because their markets react overnight with great frequency.