U.S. asset manager WisdomTree launched its first investment product related to Bitcoin, an exchange-traded product (ETP) which will guarantee large investors exposure to BTC without the need to directly hold the asset. The news was published by WisdomTree on December 3.
WisdomTree Embraces Bitcoin
WisdomTree, one of the industry’s largest ETF provider in the United States with over $40 billion assets under management (AUM), is the first mainstream financial institution to have launched a product which offers exposure to digital assets. The WisdomTree Bitcoin exchange-traded product (ETP) aims to meet the demand of those investors who want to try to take advantage of Bitcoin’s volatility without necessarily having to move on to the mangy step of detaining the popular cryptocurrency.
Alexis Marinof, head of Europe for WisdomTree, explains that WisdomTree has been monitoring the cryptocurrency market for some time and have come to the conclusion that they are not a passing phenomenon. Not having Bitcoin in your portfolio can be riskier than having them, and according to Marinof, WisdomTree guarantees investors a safe and reliable method to add this asset into portfolios.
According to reports, the WisdomTree Bitcoin ETP (BTCW) will be listed on SIX Swiss Exchange, the body that to date has been more open to this type of innovation. The Swiss exchange has already listed other products based on cryptocurrencies such as the exchange-traded product (ETP) based on a combination of Bitcoin and Ether launched earlier in October.
WisdomTree’s underlying Bitcoin will be held in “cold,” or offline, storage by Swissquote bank, a Swiss banking group specializing in the provision of online financial and trading services.
Initially, the product will be available exclusively for qualified investors but the company hopes to obtain regulatory approval for the wider investor community.
Differentiating from Competitors to Gain Momentum
WisdomTree has a history of bringing innovative investment themes to a broad market through institutional-class products. With the introduction of this product, the company seeks to differentiate itself from its competitors to bridge the gap between the traditional investment universe and cryptocurrencies.
If Bitcoin actually becomes a global asset, WisdomTree would surely find itself in an enviable position, obtained only as a matter of openness.