New York-based ETF manager WisdomTree has announced the launch of three exchange-traded products (ETPs), expanding its product offering in the European market.
WisdomTree Crypto Market (BLOC), WisdomTree Crypto Altcoins (WALT), and WisdomTree Crypto Mega Cap Equal Weight (MEGA) are three exchange-traded financial products that follow WisdomTree’s index, all 100% backed by the relevant crypto assets.
The ETPs are listed on the Swiss stock exchange SIX, and Germany’s Börse Xetra, and will be sold across the European Union.
As per the press release, BLOC is a market-cap-weighted ETP that invests in crypto assets representing 70% of the total market capitalization, such as Bitcoin (BTC), Ethereum (ETH), Ada (ADA), Solana (SOL), and Polkadot (DOT).
Since Bitcoin and Ethereum constitute a large part of the cryptocurrency market cap, their combined weighting has a limit of 75%. Moreover, each crypto asset has a maximum cap of 45% and a minimum allocation of 2.5%, thereby offering diversified exposure.
Another ETF, WALT offers a diversified investment in Altcoins which have the highest market capitalizations such as Cardano, Bitcoin Cash, Litecoin, Polkadot, and Solana, each having a maximum weighting of 50. Both BLOC and WALT carry a total expense ratio of 145 basis points.
Lastly, MEGA ETF aims to offer exposure to top crypto assets, Bitcoin and Ethereum and is currently the lowest priced physically-backed cryptocurrency basket ETP in Europe.
Jason Guthrie, Head of Digital Assets of WisdomTree Europe said in the press release that the asset class has now captured the $2.6 trillion market. He added:
“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.”