WisdomTree has launched three cryptocurrency exchange-traded products (ETPs), the firm has announced.
The WisdomTree Crypto Market (Bloc), WisdomTree Crypto Altcoins (Walt) and WisdomTree Crypto Mega Cap Equal Weight (Mega) ETPs are all available to European investors and listed on both SIX and Börse Xetra.
The funds offer access to a range of crypto assets without investors having to hold them directly, store private access keys or interact with blockchain or digital currency infrastructure.
WisdomTree’s head of digital assets Europe, Jason Guthrie, said: ‘There is now $2.6tn (€2.3tn) 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, decentralised finance and non-fungible tokens.’
Bloc is market-cap weighted and provides exposure to a diversified basket of crypto assets representing about 70% of the cryptocurrency market cap. It was designed for those seeking broad exposure to the liquid end of the crypto market.
Due to the market cap of bitcoin and ethereum, the combined weighting of these crypto assets in the ETP is capped at 75%, with individual constituents capped at a maximum weighting of 45% and a minimum allocation of 2.5% per crypto asset. Bloc has a total expense ratio of 1.45%.
Walt offers investors who already have exposure to mega-cap coins, access to a diversified basket including cardano, bitcoin cash and litecoin.
This ETP also rebalances annually to capture the momentum of the digital asset market as it grows. Individual constituents are capped at a maximum weighting of 50% and a minimum allocation of 2.5% per crypto asset. The total expense ratio for Walt amounts to 1.45%.
The third product, Mega, which has an equally weighted allocation to mega-cap crypto assets including bitcoin and ethereum, is the lowest-priced physically-backed cryptocurrency basket ETP in Europe, with a 0.95% total expense ratio.
The product is directed at investors seeking diversified exposure to the most established cryptocurrencies, as well those planning to capture potential outperformance through regularly rebalancing to an equal-weighted exposure.