WisdomTree Grows Its Digital Fund Offerings
The U.S. Securities and Exchange Commission (SEC) has approved nine additional blockchain-enabled funds from WisdomTree, an $82 billion asset manager. While none of these funds directly track cryptocurrencies, they utilize the Ethereum and Stellar blockchains to keep a secondary record of share ownership. This innovative approach has allowed the funds to be classified as “digital funds,” as the firm refers to them.
Details of the Approval
The SEC’s green light was announced on December 14, with WisdomTree stating that these funds will offer investors exposure to various asset classes, including equities, commodities, and floating-rate treasuries. The launch of these funds is expected to take place in the first quarter of 2023 via the WisdomTree Prime mobile app.
Will Peck, WisdomTree’s head of digital assets, commented on the implications of blockchain technology for investor experiences. He stated, “We believe that blockchain-enabled finance has the potential to improve the investor experience through enhanced liquidity, transparency and standardization, which we aim to achieve over time.”
Previous Endeavors and Future Plans
This latest approval follows a previous green light from the SEC for WisdomTree’s inaugural digital fund, the WisdomTree Short-Term Treasury Digital Fund (WTSYX) in September. The firm’s interest in creating digital funds isn’t new — it aims to leverage blockchain technology to enhance trading and transaction settlements. Peck highlighted, “Some blockchains can provide near-instant settlement finality on a peer-to-peer basis on a 24/7/365 basis,” which could offer significant advantages over traditional settlement methods.
Spot Bitcoin ETF Pursuit
Despite the progress with digital funds, WisdomTree has faced roadblocks in its attempts to launch a spot Bitcoin exchange-traded fund (ETF). The SEC has rejected several of WisdomTree’s applications citing concerns related to fraud and market manipulation inherent within BTC trading markets. As of now, the SEC has yet to approve any spot Bitcoin ETF.
WisdomTree continues to diversify its cryptocurrency offerings, having launched crypto exchange-traded products (ETPs) backed by various altcoins, including Solana (SOL), Cardano (ADA), and Polkadot (DOT) earlier this year.
