New Listing

WisdomTree adds blockchain ETF to thematics range

WBLK will overweight ‘blockchain engagers’

Theo Andrew

Pierre Debru, WisdomTree

WisdomTree has expanded its thematic range with the launch of a blockchain ETF.

The WisdomTree Blockchain UCITS ETF (WBLK) is listed on the Deutsche Boerse and Borsa Italiana and will also list on the London Stock Exchange on 14 September with a total expense ratio (TER) of 0.45%.

WBLK tracks the WisdomTree Blockchain index which offers exposure to companies with a primary focus on blockchain and crypto technologies.

The stocks in the index will either be labelled ‘blockchain enablers’, companies that support the blockchain ecosystem and ‘blockchain engagers’, companies that offer cryptocurrency and blockchain-related services.

WisdomTree said blockchain enablers will have a weighting limit applied to their holdings as it expects their miner rewards will decrease over time as cryptocurrencies move to more energy-efficient models such as proof-of-stake.

As a result, an overweight exposure is applied to blockchain engagers.

The asset manager said it hopes to leverage its crypto expertise, having launched one of the first crypto-backed exchange-traded products (ETPs), the WisdomTree Crypto ETP (BTCW), in 2019.

Pierre Debru (pictured), head of quantitative research and multi-asset solutions for Europe at WisdomTree, said: “Because of their high growth potential, investors often see investment in digital assets or blockchain-related assets as a thematic investment.

“The variety of the applications and use cases for blockchain are becoming more apparent and can be seen across entertainment, cloud storage and gaming, among others.”

Alexis Marinof, head of Europe at WisdomTree, added: “We believe blockchain is a transformative technology that has the potential to disrupt industries and enable new business models. The potential applications of the technology are endless, and we expect to see new use cases for blockchain to emerge over the coming decades.”

It is the issuer’s third thematic equity launch of the year, following the unveiling of the WisdomTree Recycling Decarbonisation UCITS ETF (WRCY) and the WisdomTree New Economy Real Estate UCITS ETF (WTRE).

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