Wisdomtree presents 3 new crypto ETPs because investors are looking for diversity

The asset manager Wisdomtree has added three physically secured crypto ETPs because the issuers hurry to satisfy the demand from investors who want to diversify their stocks on digital assets.

The fund group, which manages a fortune of around $ 80 billion, has launched Solana, Cardano and Polkadot ETPs this week. The products were traded on the stock exchanges in Germany and Switzerland on Tuesday and came to the Euronext exchanges in Amsterdam and Paris on Thursday

The ETP trio that can be sold throughout the European Union shows a cost rate of 95 basis points.

Jason Guthrie, head of the digital assets division for Europe, told Blockworks that his customer base on the continent consists exclusively of institutional investors.

"It is not that a handful of customers or a large customer says: 'I really want to Cardano or Polkadot', but there is this growing appetite for a constantly growing product range,” said Guthrie. "In my opinion, the ability of people to react to market situations, adapt their portfolio and have a more robust toolkit is the loudest message that we receive from our customer base."

The market capitalization of Solana (SOL) and Cardano (ADA) amount to around $ 40 billion or $ 37 billion - well for the sixth and eight -eight among cryptocurrencies, according to the data compiled by block works. Polkadot (DOT) occupies 11th place at around $ 25 billion.

Wisdomtree now offers eight crypto ETPs. In addition to Bitcoin and Ethereum products, the company launched three crypto basket ETPs in November. The ETPS Crypto Market (Bloc), Crypto Altcoins (Walt) and Crypto Mega Cap Equal Weight (Mega) were developed to offer a mixed engagement in blue chip coins as well as decentralized financial payments, smart contracts and non-fungible tokens (NFTS)).

"While Bitcoin and Ethereum make headlines, old coins are now practical options for many institutional investors and offer more options for diversifying their crypto stocks, just like at any other investment class," said Alexis Marinof, Head of Europe from WisdomTree, in a statement.

When choosing the raisin of cryptocurrencies for products, Guthrie evaluates that the company evaluates the trading volume and the developer activities as well as support from stock exchanges and storage.

Wisdomtree tested "many very interesting projects", he added and found that future engagements could take place in the form of single-asset or basket products. Guthrie announced no specific assets that the company is considering.

The FTX stock exchange and the asset manager Coinhares introduced a physically dropped Solana ETP in Germany last week. The Defi Technologies subsidiary Valor introduced the ETPS Terra (Luna) and Avalanche (Avax) in the country a few days later.

The emittent 21Shares, which has launched a number of crypto ETPs in the past few months, plans to have products by the end of the year that support the company 50 most important cryptocurrencies, CEO Hany Rashwan told Blockworks.

Guthrie recognized the increasing competition in the European crypto ETP room. The managing director added it to bring new offers to the market, but it was a "balancing act" to ensure that the company maintains a "manageable" product range.

"If you throw too much against the wall, it will only become confusing for investors," said Guthrie. "I also think that in this area there is a risk that if you go down the list too far down, you will get to products that may not yet be mature enough, have regulatory problems or have less established applications."

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The Wisdomtree contribution introduces 3 new crypto ETPs because investors are looking for diversity is not a financial advice.