- The launches on exchanges across Europe come as the company seeks to offer a stronger set of tools to institutional investors.
- WisdomTree is exploring many more "very exciting projects," an exec told Blockworks.
Asset manager WisdomTree has added three physically-backed crypto ETPs as issuers race to meet demand from investors looking to diversify their digital asset holdings.
The fund group, which manages roughly $80 billion in assets, this week launched Solana, Cardano, and Polkadot ETPs (exchange-traded products). The products began trading on the German and Swiss stock exchanges on Tuesday and hit the Euronext exchanges in Amsterdam and Paris on Thursday.
The trio of ETPs, which can be sold throughout the European Union, have an expense ratio of 95 basis points.
Jason Guthrie, the firm's head of digital assets for Europe, told Blockworks that its client base on the continent is made up entirely of institutional investors.
โIt's not that you get a handful of customers or one big customer saying, 'I really want Cardano or Polkadot,' specifically, but there's a growing appetite for an ever-expanding suite of products,โ Guthrie said. "The ability of people to respond to market situations, to adjust their portfolio, to have a stronger set of tools, I think is by far the strongest message we get from our client base."
The market caps of Solana (SOL) and Cardano (ADA) are roughly $40 billion and $37 billion, respectively, good for sixth and eighth among cryptocurrencies, according to data compiled by Blockworks. Polkadot (DOT) ranks 11th, with around $25 billion.
WisdomTree now offers eight crypto ETPs. In addition to bitcoin and ethereum products, the company launched three cryptocurrency basket ETPs in November. The Crypto Market (BLOC), Crypto Altcoins (WALT), and Crypto Mega Cap Equal Weight (MEGA) ETPs were designed to offer combined exposure to top-tier coins as well as decentralized finance payments, smart contracts, and non-fungible tokens (NFTs). . ).
โWhile Bitcoin and Ethereum grab the headlines, altcoins are now viable options for many institutional investors, providing more options to diversify their cryptocurrency holdings than they would any other asset class,โ said Alexis Marinof, WisdomTree Europe Director. , it's a statement.
In selecting cryptocurrencies for products, Guthrie said the company assesses trading volumes and developer activity, as well as the support it has from exchanges and custodians.
WisdomTree is looking into "a lot of very exciting projects," he added, noting that future exhibits could come in the form of basket or single-asset products. Guthrie did not disclose any specific assets the firm is considering.
Exchange FTX and asset manager CoinShares thrown out a Solana Physical Stake ETP in Germany last week. DeFi Technologies subsidiary Valor launched the Terra (LUNA) and Avalanche (AVAX) ETPs in the country a few days later.
Issuer 21Shares, which has launched a number of crypto ETPs in recent months, plans to have products supporting what the company considers the top 50 cryptocurrencies by the end of the year, CEO Hany Rashwan told Blockworks.
Guthrie acknowledged the growing competition in the European crypto ETP space. While it is important to bring new offerings to market, the executive added, it is a "balancing act" to ensure the company maintains a "manageable" product range.
"If you throw too much against the wall, it becomes confusing for investors," Guthrie said. "I also think there's a risk with this space that if it goes too far down the list, it can get sidetracked into products that are potentially not yet mature enough, have regulatory issues, or have less established use cases."
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