WisdomTree Invests in Securrency: Paving the Way for Blockchain-Enabled ETFs

Securrency’s Big Win

In a major move for the ETF landscape, WisdomTree has just pumped $17 million into Securrency Inc., a startup known for its cutting-edge blockchain solutions tailored for the financial sector. This partnership aims to bridge the gap between traditional exchange-traded funds (ETFs) and innovative blockchain technology. Now that’s a match made in financial heaven!

The Quest for Crypto ETFs

While investors are ripe for digital asset exposure via ETFs, the U.S. markets are still in a holding pattern. With heavyweights like VanEck/SolidX and Bitwise attempting—and failing—to launch crypto ETFs, it seems regulatory approval remains as elusive as a unicorn at a birthday party. But with WisdomTree’s latest investment, we might finally see some real movement in that direction.

Blockchain to the Rescue?

WisdomTree’s strategy revolves around leveraging Securrency’s blockchain expertise to navigate the regulatory waters. Their approach seeks to ensure compliance while expanding ETF accessibility. Jonathan Steinberg, WisdomTree’s founder and CEO, elaborates, stating that his evaluation of blockchain solutions highlighted some unnecessary complexity and compliance issues. But don’t throw the baby out with the bathwater; there’s potential with the right implementation!

What Makes Securrency Stand Out

So, why Securrency? This startup isn’t just any blockchain player; it’s known for its focus on institutional-grade solutions. With significant funding from other notable investors, including the Abu Dhabi Investment Office and Monex Group, Securrency is positioned to work closely with regulators while pushing the blockchain envelope. By focusing on compliance and identity verification, they might just be the ticket for getting crypto ETFs on the market.

The Future of ETFs and Blockchain

As regulators review the landscape for crypto ETFs, WisdomTree is hopeful that their investment will provide a launching pad for future blockchain integration. With the SEC expected to weigh in on Wilson Phoenix’s Bitcoin ETF by February 2020, the anticipation continues to build. Steinberg outlines his firm’s hope, “…when applied correctly, blockchain will benefit investors in new and exciting ways.” So grab the popcorn; this financial drama is just getting started.