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WisdomTree, a New York-based exchange-traded fund (ETF) issuer and asset manager, has launched a physically backed Bitcoin exchange traded product (ETP).
On December 3rd, WisdomTree announced the Bitcoin news of its latest venture in the cryptocurrency sector. The asset management firm currently holds over $60 billion in client assets since its launch in June 2006.
WisdomTree Bitcoin ETP (BTCW) was registered on SIX, the Swiss Stock Exchange, yesterday, totaling its expense ratio of 0.95%. It will aim at providing investors with a basic, safe and cost-efficient way to be exposed to Bitcoin(BTC)trade while taking advantage of the best of traditional currency’s infrastructure. ETP investors have the benefit of accessing Bitcoin without the need to store private keys, hold a digital currency in a wallet or directly deal with blockchain technology.
The head of WisdomTree Europe, Alexis Marinof stated that WisdomTree has been monitoring digital currency for a while and is optimistic about bringing investors to this virtual asset class through conventional secure channels.
He further stated that digital assets are not just a mere passing trend and the company has a background in helping investors gain exposure of harder to grasp asset classes. Marinof said that the introduction of a digital currency in the structure of ETP will allow investors to explore new ways to bring virtual assets into portfolios, through secure and safe methods by WisdomTree.
Bridging the Gap Between Crypto and Traditional Finance
The Head of Product Development of Capital Markets and Technology at WisdomTree, Rafi Aviav, stated that the company bridges the gap between digital currencies based on blockchain technology and the traditional investment infrastructures, and this will act as a solution for investors who face difficulty in managing digital assets.
Aviav further asserted that the ETP adds new possibilities to the digital currency space such as institutional class custody resolutions for new investors and in addition a transparent, safe and liquid trading.
He also added that WisdomTree is the market leader in physical gold ETPs in Europe and had launched the first global physically backed gold ETP all the way back in 2003, and the latest launch of the WisdomTree Bitcoin ETP is a continuation of WisdomTree’s tradition of innovation. Aviav proclaimed that the company is focusing on professional investors at its initial stage, as it is the company’s belief that in the coming future, digital currency ETP might be more accepted by regulators for common use by a larger section of investors in the community.
The CEO of WisdomTree, Jonathan Steinberg said that WisdomTree views blockchain technology as being transformative for the asset management industry and could change how investors view financial market.