WisdomTree, one of the ten issuers of spot Bitcoin exchange-traded funds (ETFs), expects its product to be more successful in the second half of the year thanks to adoption by financial advisor platforms.
Speaking to CoinDesk TV, Will Peck, head of digital assets at WisdomTree (WETF), said that the fund manager's WisdomTree Bitcoin Fund (BTCW) is designed for advisor distribution and that many of these platforms do not yet allow trading in new products.
“We didn’t have any kind of balance sheet, we didn’t bet big money or anything like some of the other players did,” Peck said. Still, he said the fund had seen strong trading in recent days and that it was performing “exactly as we expected.”
According to data from Bloomberg Intelligence, WisdomTree's BTCW has attracted the lowest assets under management (AUM) among the ten Bitcoin ETFs, at around $12.8 million (296 Bitcoin). Asset management giant Franklin Templeton has the second-lowest AUM at $64.5 million. The leaders in collecting assets are BlackRock (more than $3 billion in assets under management) and Fidelity ($2.7 billion in assets under management). Grayscale, which converted its Grayscale Bitcoin Fund (GBTC) into an ETF and therefore entered the race with $30 billion in AUM, has lost about $10 billion of that since the ETF began trading on Jan. 11.
However, Peck is optimistic and encouraged that WisdomTree will be more competitive in the future. He says the race is still early and that in about six months more advisory platforms will allow ETF trading, giving WisdomTree a competitive advantage over the other issuers.
“I think the platforms are becoming more and more accustomed to Bitcoin as an asset class… It’s just a matter of time before these become more widely available on the platforms that allow them.”
“We are currently having very good discussions with financial advisors and financial advisor platforms,” Peck added.
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