WisdomTree, a renowned sponsor for exchange-traded funds (ETFs) and exchange-traded products (ETPs), has expanded its crypto range by rolling out a physically-backed Ethereum (ETH) ETP. The firm unveiled this news through a press release on April 29, noting that the WisdomTree Ethereum ETP (ETHW) got listed on two exchanges at launch. These are Deutsche Börse Xetra and SIX, the Swiss Stock Exchange.
According to the news release, this launch seeks to offer investors a simple, secure and cost-effective avenue to ether’s price by leveraging the best traditional financial infrastructure and product design. Through ETHW, investors will be able to access ETH without direct custody of the coin. Apart from this, the investors will get to bypass other crypto-related intricacies such as storing private keys and interacting with the blockchain.
Commenting on this move, Jason Guthrie, WisdomTree’s Head of Capital Markets and Digital Assets, said,
“The expansion of our digital assets range is a significant milestone and further demonstrates our commitment to delivering innovative digital asset solutions for institutional investors. ETHW is a best-in-class ETP, complementing our market leading bitcoin ETP, and launched at a time when interest in digital assets is at its highest.”
Institutional investors continue dabbling in crypto
The increasing popularity of cryptocurrencies has enticed institutional investors into the nascent space. As such, WisdomTree expects that the adoption of its products will surge as investors scramble to get a piece of the crypto cake.
Per Alexis Marinof, WisdomTree’s Head of Europe, the company has witnessed significant growth in the interest of its Bitcoin (BTC) ETF. The asset class is still young, 2020 was a monumental year, as it marked the beginning of an influx of investors who sought to diversify their portfolios. Marinof went on to note that the launch of ETHW offers WisdomTree products and research capabilities that support investors who seek to dip their toes in crypto and those that want to expand their exposure in the space.
ETHW will introduce an unprecedented level of transparency and liquidity into the crypto space. By leveraging a multi-custodian model, which currently comprises Coinbase and Swissquote, WisdomTree enjoys enhanced connectivity with the broader crypto market, which in turn offers more crypto liquidity.