New ETPs (exchange-traded products) issued by London-based WisdomTree on Börse Xetra and the Swiss SIX exchange.
New financial instruments in the crypto world: ETPs for Solana, Cardano and Polkadot
WisdomTree has announced the launch of new ETPs on Solana (SOL), Cardano (ADA) and Polkadot (DOT).
WisdomTree is a London-based company that manages both ETPs (exchange traded products) and ETFs (exchange traded funds), and has chosen to expand its range with new physically replicated products on some of the major cryptocurrencies.
The new ETPs are SOLW (WisdomTree Solana), ADAW (WisdomTree Cardano) and DOTW (WisdomTree Polkadot) and are listed on Börse Xetra and the Swiss exchange SIX. They will also be listed on Euronext’s Amsterdam and Paris lists from 31 March.
The company has previously issued other cryptocurrency-based ETPs, such as WisdomTree Bitcoin (BTCW) and WisdomTree Ethereum (ETHW), also listed on the Swiss SIX exchange. Besides these it also offers some ETPs based on multi-currency baskets, such as WisdomTree Crypto Market (BLOC), WisdomTree Crypto Altcoin (WALT) and WisdomTree Crypto Mega Cap Equal Weight ETP (MEGA).
These ETPs are designed to offer investors a simple, safe and cost-effective way to gain exposure to the prices of the three cryptocurrencies, and may also offer investors rewards from staking the tokens on which they are based.
Through ETPs, investors can gain exposure to a wide range of digital assets without having to directly hold the tokens or interact with the blockchain or digital currency infrastructure. These are derivative products that trade on traditional markets in exactly the same way as other ETPs that replicate the price movements of other traditional assets.
WisdomTree’s custody services
To ensure the highest possible level of security, WisdomTree uses institutional-grade cold wallet-based token custody services.
WisdomTree’s Head of Digital Assets for Europe, Jason Guthrie, said:
“We want to provide investors with a range of crypto asset exposures, whether that be through diversified baskets or single trackers. A key component to our approach is launching strategies which will resonate with institutional investors. These need to be crypto assets which are liquid enough for institutional use, are supported by the ETP market participants and have clear use cases. As the crypto asset market evolves, so to will the ETP ecosystem which is needed for more institutional adoption. We will continue to enhance and expand our product range, supporting investors on their journey into crypto assets”.
WisdomTree’s Head of Europe, Alexis Marinof, added:
“Digital assets are an exciting and growing asset class, which is continuing to capture the imagination of investors. Interesting and different use cases for the likes of Solana, Cardano and Polkadot represent the next stage of evolution for this young asset class. While bitcoin and Ethereum grab the headlines, altcoins are now viable options for many institutional investors, providing more options to diversify their crypto holdings just like they would with any other asset class”.