WisdomTree Adds Polygon and Avalanche to Crypto-Basket ETPs
WisdomTree Investments, Inc., a New York-based exchange-traded fund and exchange-traded product provider and asset manager, announced Monday that it has added Polygon (MATIC) and Avalanche (AVAX) to indices of two physical-backed cryptocurrency exchange-traded products (ETPs), WisdomTree Crypto Market (BLOC) and WisdomTree Crypto Altcoins (WALT).
The firm added Polygon and Avalanche to the WisdomTree Crypto Market (BLOC) and WisdomTree Crypto Altcoins (WALT).
BLOC and WALT are already traded on the German stock exchange Börse Xetra, the French stock exchange known as “Euronext Paris”, the Amsterdam stock exchange and the Swiss stock exchange SIX.
The two crypto ETPs have an EU-wide sales passport.
Alexis Marinof, head of Europe at WisdomTree, spoke about the development: “Our crypto baskets are designed to give investors exposure to the changing environment of cryptoassets. Additional coins such as MATIC and AVAX may be added to the indices through quarterly resets. Before being included in our indices, coins are evaluated by a committee and must meet several criteria, including sufficient liquidity levels, practical use cases and significant mass.”
Marinof further elaborated: “Our monitoring and rebalancing enables investors to easily allocate some of our largest and most liquid investable crypto assets within a known structure without having to open or insure individual portfolios or individual currencies for stakes.”
BLOC is a free-floating market capitalization-weighted ETP that offers exposure to a diversified basket of cryptocurrencies representing approximately 65% of the crypto market capitalization. The product is designed for investors who want broad exposure to the liquid and established assets in the crypto market. With the new additions, the basic BLOC index now consists of Bitcoin, Ethereum, Cardano, Bitcoin CashLitecoin, Polkadot, Solana, Polygon and Avalanche.
On the other hand, WALT is a market cap-weighted free-float ETP that allows exposure to a diversified basket of altcoins. ETPs offer exposure to major cryptoassets, excluding Bitcoin and Ethereum. It was designed for investors who already have exposure to these major cryptocurrencies and want to diversify their exposure without changing their current holdings. With the new additions, the basic WALT index now consists of Cardano, Bitcoin Cash, Litecoin, Polkadot, Solana, Polygon and Avalanche.
WisdomTree said it added MATIC and AVAX to BLOC and WALT on August 19 after rebalancing the indices of the two crypto ETPs.
Crypto ETPs are booming in Europe
The crypto-ETP market in Europe is becoming more competitive than in North America and Latin America. Companies are issuing several varieties of crypto ETPs due to increasing demand.
In February, Fidelity International listed the Fidelity Physical Bitcoin ETP on Germany’s Deutsche Börse exchange and Switzerland’s SIX Swiss Exchange. The product is available to institutional clients and investment firms in Europe.
In March, WisdomTree launched three new crypto ETPs backed by Solana, Cardanoand Polkadot in Europe.
In 2019, WisdomTree launched its first ETP for cryptoassets and has continued to build some diversified crypto baskets since then. WisdomTree has $200 million in assets under management in its crypto asset ETPs.
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