WisdomTree has created four cryptocurrency indices for the United States and Europe. The indices are expected to allow investors leverage on the volatility of the most traded cryptocurrencies and associated digital assets directly. Today WisdomTree announced the creation of the different indices to enable investors to engage various aspects of the blockchain market.
Partnerships And Details Of The Indices
WisdomTree partnered with an asset manager, an integration company as well as a crypto exchange and custody to create the Indices. The RWM WisdomTree Crypto Index will be traded in the United States. The other three indices will be traded in Europe; they include; MEGA, BLOC, and WALT.
Onramp Technology platform, which supports the RWM Wisdom Tree Crypto Index, will allow fund managers to run investments on behalf of wealthy individuals. Bitcoin has the largest composition with over 30% in the RWM WisdomTree Crypto Index; Ethereum is second with about 20% composition. 44% of the Index makeup is formed by 11 digital assets representing different aspects of the blockchain market.
An executive at WisdomTree, Jeremy Schwartz, revealed that the company believed in the solutions that cryptocurrencies could bring to financial services. The company, he said, has invested a lot in creating the index and mapping out strategies for cryptocurrency investment. He expressed his belief that the execution of the Index working with their partners offered the best crypto engagement for fund managers and investors in the United States.
A team will be formed to evaluate the index at intervals. The team will be responsible for adding new digital assets when they meet all the necessary criteria. Many of WisdomTree’s partners have invested in the index already.
The Director of Research at RWM, Michael Batnick, revealed that, in his opinion, it was time for blockchain technology and the related assets to go mainstream. He said an implicit burden rested on the company as fund managers to get ahead of the curve and take advantage of the emerging market’s opportunities. He further stated that as a firm that relied on trust to do business, they were obligated to carry out investments within the confines of good risk management.
The firm believes that the move will help investors diversify their portfolios. Batnick stated that the platform they were creating for investors would allow the firm to have a big impact on the market. Onramp invest will equip fund managers with the tools to trade the index for clients.
MEGA will track the movements of cryptocurrencies that have a huge market capitalization. BLOC will consist of crypto in the top 70% of the market capitalization. WALT will mimic the movements of crypto aside from the top 2 by market capitalization.
Outlook And ETFs
The head of operations in Europe, Alexis Marinof, said that the company would keep trying to provide ways for interested investors to engage the rapidly growing market. The SEC within this same week, had rejected the company’s application for a spot Bitcoin Exchange Traded Fund. The SEC stated in their ruling that the company’s submission didn’t satisfy certain regulatory metrics. The company has launched other such products in Europe recently on the other hand.
The head of digital assets in Europe, Jason Guthrie, emphasized the company’s faith in digital assets citing the growth of the market to trillions of dollars as proof of the value. He stated that fund managers would need the best platforms and packages to better access the emerging market. That is the gap the company is filling, he says.