Crypto index prepared for the start because the interest of financial advisors is growing

Crypto index prepared for the start because the interest of financial advisors is growing

A crypto index developed by Widsomtree Investments and Rithholtz Wealth Management is to be available more broadly next week, as more financial experts have expressed interest in this area.

The RWM Wisdomtree Crypto Index (RTREE)-Available via a separately managed account (SMA)-was made available in December.

In the period since then, Ritholtz has opened, financed and invested customer funds in order to refine the company, according to Michael Batnick, the managing partner of the company's asset management.

"A lot has to be done to ensure that consultants feel comfortable here, because many people are crypto in general," Batnick told Blockworks. "Any kind of funkiness or glitch in the matrix and the people are very nervous."

Around 200 consultants would be interested in the index, Batnick added. And Ritholtz is in discussions with several billions of investors (RIAS) on the offer.

The index will be provided to all consultants on March 1st on Onramp Invest, which provides the SMA architecture, rebalancing technology and consultant support. The Gemini cryptoplattform is your custodian bank.

Jeremy Schwartz, Chief Investment Officer from Wisdomtree, said during a virtual event on Tuesday that the index aims to offer an engagement in Bitcoin and Ether and at the same time use potential upward potential for old coins.

Bitcoin and ether currently account for 36 % and 17 % of the index. Assignments to 11 other coins - terra (luna), uniswap (uni), chainlink (link), polygon (matic), decentraland (mana), fantom (ftm), the graph (grt), aave (aave), enjin coin (enj), yearn.finance (yfi) and sushiswap (sushi) 3 % to 7 %.

It is planned to check the engagements monthly. Avalanche (Avax), which does not support Gemini, is an advantage that could add the Wisdomtree in the future, said Schwartz.

looking for a gap

The start takes place on the heels of financial advisors who are increasingly trying to invest customer funds in crypto. A survey by Bitwise Asset Management and ETF trends last month showed that the percentage of financial specialists who invest customer funds in Krypto has increased from 9 % to 15 % last year.

Other 14 % stated that they will buy "probably" or "definitely" crypto this year Research .

"I believe in keeping the underlying, but in a package that is very similar to what consultants are used to," said Tyrone Ross Jr., CEO from Onramp Invest, during the virtual event. "You shouldn't be afraid or worry about custody or cold wallet or hot wallet or something. Let's take it away."

Although Wisdomtree has launched listed products (ETPS) that offer a diversified crypto engagement in Europe, the SEC has not yet approved spot crypto ETFs in the USA. Schwartz called Bitcoin Futures ETFs that the SEC approved in October.

"We have seen ... from our experience that the [separately managed account] will probably be the best structure for a long time - definitely if you want this diversified commitment," said Schwartz.

The index is to be introduced because the cryptoma markets have been falling recently. Bitcoin has dropped by about 25 % since Ritholtz started testing the index, and some old coins have dropped even more.

"Obviously it is not ideal," he said. "I wish it had been the other way around, but that doesn't change anything how we distribute money here."

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The contribution "Crypto Index is preparing for the start, since the interest of financial advisors is growing" is not a financial advice.