WisdomTree has launched solana, cardano, and polkadot exchange-traded products (ETPs) with the potential to offer staking rewards to investors.
The WisdomTree Cardano ETN (ADAW), the WisdomTree Polkadot ETN (DOTW) and the WisdomTree Solana ETN (SOLW) are listed on Six Swiss Exchange and the Boerse Frankfurt with total expense ratios (TERs) of 0.95%.
It takes the number of crypto ETPs in WisdomTree’s range to eight.
The solana and cardano digital assets each use a proof of stake consensus model allowing investors to potentially benefit from additional returns.
Staking enables issuers to boost the returns of some ETPs by contributing their coins to large pools of assets in exchange for rewards. Typically, these are then be passed on to the investor via additional returns or a reduction in the management fee.
Meanwhile, polkadot uses a proof of authority model designed to mean the network does not need to be forked when installing upgrades.
Jason Guthrie, head of digital assets for Europe at WisdomTree, said: “A key component to our approach is launching strategies which will resonate with institutional investors.
“These need to be crypto assets that are liquid enough for institutional use, are supported by the ETP market participants and have clear use cases.
“As the crypto asset market evolves, so too will the ETP ecosystem which is needed for more institutional adoption. We will continue to enhance and expand our product range, supporting investors on their journey into crypto assets.”
Alexis Marinof (pictured), head of Europe at WisdomTree, added: “While bitcoin and ethereum grab the headlines, altcoins are now viable options for many institutional investors, providing more options to diversify their crypto holdings just like they would with any other asset class.”
Last November, WisdomTree launched three multi-asset crypto ETPs including mega cap and altcoin baskets.
Earlier this month, the firm unveiled four short and leveraged exchange-traded products (S&L) ETPs tracking the travel and leisure, oil and gas and automobile sectors.