WisdomTree has launched three cryptocurrency basket exchange-traded products (ETPs) including mega-cap and altcoin ETPs.
The WisdomTree Crypto Market (BLOC), Wisdomtree Crypto Altcoins (WALT) and the WisdomTree Crypto Mega Cap Equal Weight (MEGA) are listed on SIX and Deutsche Boerse and are all physically backed.
MEGA, which has an equally weighted allocation to mega-cap digital assets including bitcoin and ethereum has a total expense ratio (TER) of 0.95%, while BLOC and WALT have fees of 1.45%.
BLOC is market cap-weighted and offers exposure to the crypto assets representing 70% of the market and is designed for those looking to get broad exposure to liquid and established end of the crypto market.
The underlying assets currently include bitcoin, ethereum, cardano, bitcoin cash, litecoin, polkadot, and solana. Individual constituents are capped at a max weighting of 45%.
WALT offers investors a chance to diversify from mega-cap coins and currently comprises cardano, bitcoin cash, litecoin, polkadot and solana with individual coins capped at a max weighting of 50%.
Jason Guthrie, head of digital assets, Europe, at WisdomTree said the firm believes in the power of the new asset class which has now grown to $2.6trn assets under management.
“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 and NFTs.”
Alexis Marinof (pictured), head of Europe at WisdomTree added: “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.”
In April, the firm expanded its cryptocurrency range with the launch of an ethereum strategy, the WisdomTree Ethereum ETP (ETHW).
In September, it strengthened its digital assets team with the appointment of Benjamin Dean as director of its digital assets team from Hiscox and Alice Liu as a senior associate from Coutts.