ETF STRATEGY NEWS! ETF Strategy is pleased to announce the launch of ETF Strategy Hub (hub.etfstrategy.com), an on-demand repository of webcasts, videos, podcasts, and whitepapers. Debut with a special series on technology and innovation in China and the digital economy.
wisdom tree has expanded its range of investment products for digital assets in Europe with the launch of a directly collateralized ether ETP.
Jason Guthrie, Head of Capital Markets and Digital Assets in Europe, WisdomTree.
That WisdomTree Ethereum ETP quoted in euros Deutsche Boerse Xetra (WETH GY) and in euros and US dollars SIX Swiss Stock Exchange (ETH SW).
Ether is the second largest cryptocurrency in the world and the native token for the Ethereum blockchain, a well-established, open decentralized platform and the leading place for the deployment of smart contracts.
ETPs have become the structure of choice for institutional investors investing in digital assets as they fit seamlessly into current portfolio management structures while avoiding the inconveniences, technical challenges and associated risks of self-custody in a digital wallet.
WETH is referred to the CME CF Ether Dollar Reference Rate, a daily reference rate of the US dollar price of an ether as of 4:00 p.m. London time. The rate is calculated by CME group and derived from ether prices on major cryptocurrency exchanges Bitstamp, Coinbase, Gemini, itBit and Kraken.
Each share of the ETP is fully backed with 0.01 Ether at inception, with holdings held at Swissquote Bank and Coinbase Custody. According to WisdomTree, this multi-custodian model serves to provide more liquidity for the underlying digital currency. Investors can view the coin entitlement of each share and the total amount of ether held in custody on WisdomTree’s website.
The ETP has an expense ratio of 0.95%, which is equivalent to the cost of WisdomTree’s $340 million direct-backed Bitcoin product WisdomTree Bitcoin ETP (BTCW SW). It has been approved for distribution in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, the Netherlands, Norway, Spain and Sweden.
The ETP will go head-to-head with a number of other ether ETPs available in Europe, including the $230M Ethernet 21Equity Ethereum ETP (21XE GY)which comes with an expense ratio of 1.49%, which is $40 million ETHetc – ETC Group Physical Ethereum ETC (ZETH GY)also at 1.49%, and the $120 million CoinShares Physical Ethereum (ETHE SW)which costs 1.25%.
Jason Guthrie, Head of Capital Markets and Digital Assets in Europe, WisdomTree, commented: “The expansion of our digital asset offering is a significant milestone and underscores our commitment to providing innovative digital asset solutions for institutional investors. ETHW is a premium ETP that complements our market-leading Bitcoin ETP and has been launched at a time when interest in digital assets is at its peak. With this increasing popularity, institutional investors are conducting their due diligence on the most liquid cryptocurrencies, and we expect the pace of adoption in these cryptocurrencies to increase as opportunities in digital assets become more compelling.”
Alexis Marinof, Head of Europe, WisdomTree, added: “Since the launch of our first digital asset ETP, we have seen a significant increase in interest from institutional investors. The asset class is still in its infancy, but 2020 has been an important year and institutional investors are waking up to the potential that digital assets can bring to portfolios as a diversifier. Our digital asset platform grows with institutional demand. With the addition of ETHW to our offering, we now have the products and research capabilities to support institutional investors, whether they are considering their initial allocations to digital assets or looking to diversify their exposures.”
Jonathan Steinberg, CEO of WisdomTree, said, “Our digital asset initiative strengthens and expands our core business strengths while reflecting what we see as the future of investment management. The latest developments on our digital asset platform put us in a good position for success and reflect our commitment to this evolving asset class, which is fast becoming the focus of institutional investors globally.”
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.