ETF issuer WisdomTree has expanded its digital assets product range with the launch of three new physically-backed cryptocurrency basket ETPs in Europe.
The WisdomTree Crypto Market (BLOC), WisdomTree Crypto Altcoins (WALT) and WisdomTree Crypto Mega Cap Equal Weight (MEGA) ETPs, listed today on SIX, the Swiss stock exchange, and Börse Xetra, and are passported for sale across the European Union. The ETPs track proprietary indices developed by WisdomTree in collaboration with CF Benchmarks.
Jason Guthrie, Head of Digital Assets, Europe, WisdomTree says: “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 USD2.6 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. That is exactly what we have developed here; a range of institutional grade basket ETPs that allow investors to gain diversified exposure to crypto markets and, more broadly, participate in the potential growth of the decentralised economy including native cryptocurrencies, payments, smart contacts, DeFi & NFTs. These are truly disruptive technologies, and we expect the importance of the asset class to grow within investors’ portfolios.”
WisdomTree Crypto Market (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 is currently comprised of bitcoin, Ethereum, Cardano, bitcoin Cash, Litecoin, Polkadot and Solana. The ETP rebalances on an annual basis to capture the momentum of the digital asset ecosystem market as it grows. Due to the market cap of bitcoin and Ethereum, the combined weighting of these crypto assets in the ETP is capped at 75 per cent, with individual constituents capped at a max weighting of 45 per cent and a minimum allocation of 2.5 per cent per crypto asset. BLOC has a total expense ratio (TER) of 1.45 per cent.
WisdomTree Crypto Altcoins (WALT) is a free-float market cap weighted ETP providing exposure to a diversified basket of altcoins. The ETP provides exposure to major coins excluding BTC and ETH and was designed for investors who already have exposure to the mega cap coins (BTC & ETH) and want to diversify their exposure without changing their existing holdings. The ETP’s underlying index is currently comprised of Cardano, Bitcoin Cash, Litecoin, Polkadot and Solana. The ETP also rebalances on an annual basis 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 and a minimum allocation of 2.5 per cent per crypto asset. WALT has a TER of 1.45 per cent.
WisdomTree Crypto Mega Cap Equal Weight (MEGA) is designed to provide an equal weighted allocation to mega cap crypto assets, currently Bitcoin (BTC) and Ethereum (ETH) with a quarterly rebalance. It is the lowest priced physically-backed cryptocurrency basket ETP in Europe, with a TER of 0.95 per cent, WisdomTree writes. “The ETP provides investors with a simple, secure, and cost-efficient way to gain exposure to the mega cap portion of the cryptocurrency market. We expect this product to be appealing to those seeking diversified exposure to the most established cryptocurrencies and investors wanting to capture potential outperformance delivered through regularly rebalancing back to an equal weighted exposure.”
The firm says that through WisdomTree’s cryptocurrency ETPs investors can conveniently access a range of crypto assets without the need to hold them directly, store private access keys or interact with the blockchain or digital currency infrastructure in any way. “Investors also get access to institutional grade storage solutions without needing to set it up with a custodian themselves. To ensure the highest level of security, WisdomTree leverages regulated, institutional-grade digital currency custodians who maintain highly secure cold storage facilities.”
Alexis Marinof, Head of Europe, WisdomTree, says: “We are evolving our offering and building a proposition that is built around the client and innovation. By leveraging our heritage of innovation we’re able to deliver exposures that investors are unable to find elsewhere in an ETP wrapper. Interest in cryptocurrencies remains high and professional investors are seeking innovative products and a trusted partner to support them on their crypto assets journey. We are committed to supporting the needs of investors by producing high-quality research, providing superior client engagement, and building best-in-class products. As the asset class become a bigger focus for investors, we will continue to invest in our platform and capabilities to ensure we’re at the cutting edge.”
BLOC, WALT and MEGA are passported for sale in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, Netherlands, Norway, Spain, Sweden and Switzerland.