Fund Management

What's New In Investments, Funds? - WisdomTree

Editorial Staff, 1 December 2021

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The latest product and service offerings, including funds, in the wealth and asset management sector.

WisdomTree
WisdomTree, the exchange-traded fund and exchange-traded product sponsor, has launched three ETPs backed by cryptocurrencies. The ETPs are passportable for sale across Europe – but not in the UK.

The entities, which are called the WisdomTree Crypto Market (BLOC), WisdomTree Crypto Altcoins (WALT), and WisdomTree Crypto Mega Cap Equal Weight (MEGA), were listed yesterday on SIX, the Swiss stock exchange, and Börse Xetra. They track proprietary indices developed by WisdomTree alongside CF Benchmarks.

“We believe in the power of this new asset class. It is a truly transformative technology and the pace of innovation in the space is staggering. There is now $2.6 trillion dollars of value captured by the asset class, which didn’t exist pre-2009. As it inevitably continues to grow in prominence, institutions need an increasingly sophisticated tool kit to enable them to provide access effectively and efficiently to crypto asset markets for their clients,” Jason Guthrie, head of digital assets, Europe, WisdomTree said.

While remaining volatile – and facing a mixture of regulatory regimes around the world ranging from relatively liberal to hostile – digital assets such as bitcoin have continued to pique interest in the wealth management space. They have grown more “mainstream” in recent years, with firms such as BNY Mellon, JP Morgan and Julius Baer, for example, getting into the space.
 
BLOC is a free-float market cap weighted ETP, providing exposure to a diversified basket of crypto assets representing circa 70 per cent of the cryptocurrency market cap. This product is designed for those looking for a broad exposure to the liquid, established end of the crypto market. The ETP’s underlying index comprises bitcoin, Ethereum, Cardano, Bitcoin Cash, Litecoin, Polkadot and Solana. The ETP rebalances annually to capture the momentum of the digital asset ecosystem market as it grows.

WALT is a free-float market cap weighted ETP providing exposure to a diversified basket of altcoins. The ETP, which provides exposure to major coins excluding BTC and ETH, was designed for investors who already have exposure to the mega cap coins (BTC and ETH) and want to diversify their exposure without changing their existing holdings. The ETP’s underlying index currently comprises Cardano, Bitcoin Cash, Litecoin, Polkadot and Solana. The ETP also rebalances annually to capture the momentum of the digital asset ecosystem market as it grows. Individual constituents are capped at a max weighting of 50 per cent.

The third ETP, MEGA, provides an equal weighted allocation to mega cap crypto assets, currently bitcoin and Ethereum with a quarterly rebalance.

BLOC, WALT and MEGA are passported for sale in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, the Netherlands, Norway, Spain, Sweden and Switzerland.

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