WisdomTree adds blockchain ETFs to theme area
WBLK Will Overweight ‘Blockchain Engagers’
WisdomTree has expanded its thematic selection with the launch of a blockchain ETF.
The WisdomTree Blockchain UCITS ETF (WBLK) is listed on Deutsche Boerse and Borsa Italiana and will also list on the London Stock Exchange on September 14 with a total expense ratio (TER) of 0.45%.
WBLK tracks the WisdomTree Blockchain Index which offers exposure to companies with a primary focus on blockchain and crypto technologies.
The stocks in the index will either be labeled as “blockchain enablers”, companies that support the blockchain ecosystem, and “blockchain engagers”, companies that offer cryptocurrency and blockchain-related services.
WisdomTree said blockchain enablers will have a weighting limit on their holdings as it expects their miner rewards to decline over time as cryptocurrencies move to more energy-efficient models such as proof-of-stake.
As a result, an overweight exposure is applied to blockchain contributors.
The asset manager said it hopes to leverage its crypto expertise, having launched one of the first crypto-backed exchange-traded products (ETPs), WisdomTree Crypto ETP (BTCW), in 2019.
Pierre Debru (pictured), head of quantitative research and multi-asset solutions for Europe at WisdomTree, said: “Due to their high growth potential, investors often see investments in digital assets or blockchain-related assets as a thematic investment.
“The diversity of applications and use cases for blockchain is becoming more apparent and can be seen across entertainment, cloud storage and gaming, among others.”
Alexis Marinoff (pictured)head of Europe at WisdomTree, added: “We believe blockchain is a transformative technology that has the potential to disrupt industries and enable new business models. The potential uses of the technology are endless and we expect to see new uses for blockchain emerge in over the coming decades.”
It is the issuer’s third launch of the year, following the unveiling of WisdomTree Recycling Decarbonisation UCITS ETF (WRCY) and WisdomTree New Economy Real Estate UCITS ETF (WTRE).
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