NEW YORK, Dec. 14, 2022 (GLOBE NEWSWIRE) — WisdomTree, Inc. (NYSE: WT ), a global financial innovator, today announced that nine new digital funds1 have become effective with the US Securities and Exchange Commission (SEC), leading to the planned national public launch of the WisdomTree Prime mobile application, targeted for the first quarter of 2023.
The nine new digital funds reflect a range of different exposures, and each digital fund will invest in traditional assets, including the WisdomTree Short-Duration Income Digital Fund (WTSIX) which was developed by leveraging WisdomTree’s model portfolio capabilities, and the WisdomTree 500 Digital Fund (SPXUX) ) – the firm’s first digital fund that seeks to track performance in the US stock market. The WisdomTree Floating Rate Treasury Digital Fund (FLTTX) is also notable as WisdomTree continues to serve as a leader in providing exposure to floating rate Treasuries, with the WisdomTree Floating Rate Treasury Fund (USFR) bringing in over $10 billion in net flows so far in 2022 The nine new digital funds are:
- WisdomTree 3-7 Year Treasury Digital Fund (WTTSX)
- WisdomTree 7-10 Year Treasury Digital Fund (WTSTX)
- WisdomTree Long Term Treasury Digital Fund (WTLGX)
- WisdomTree Floating Rate Treasury Digital Fund (FLTTX)
- WisdomTree TIPS Digital Fund (TIPSX)
- WisdomTree 500 Digital Fund (SPXUX)
- WisdomTree Technology and Innovation 100 Digital Fund (TECHX)
- WisdomTree Short-Duration Income Digital Fund (WTSIX)
- WisdomTree S&P 500 Twitter Sentiment Digital Fund (TWTRX)
“These nine new digital funds showcase the kind of curated experiences we expect to provide to WisdomTree Prime users, and all bring mainstream assets into the evolving digital ecosystem,” said Will Peck, WisdomTree Head of Digital Assets. “We believe that blockchain-enabled finance has the potential to improve the investor experience through increased liquidity, transparency and standardization, which we aim to achieve over time, and these nine digital funds lay the foundations as we seek to bridge the gap between traditional finance and digital finance in day.”
This announcement comes after the SEC declared WisdomTree’s first digital fund, the WisdomTree Short-Term Treasury Digital Fund (WTSYX), earlier this year, with the fund expected to launch in the near future. Access to WisdomTree’s digital funds is expected to be through the WisdomTree Prime mobile application, with transactions facilitated by WisdomTree Securities, Inc.2 The waiting list for WisdomTree Prime is open.
“We expect all financial assets to eventually move onto blockchain infrastructure, and this is a significant step in that direction as we bring mainstream exposures such as fixed income, equities and commodities into the digital world through blockchain-enabled funds and tokenized assets,” said Jarrett Lilien, WisdomTree President and COO. “Our vision is becoming a reality, and these are further building blocks in the foundation that will allow us to lead the coming evolution of financial services, and claim the deepest exposures in the digital envelope.”
For more information on the upcoming launch of WisdomTree Prime™, please visit: https://www.wisdomtreeprime.com/.
About WisdomTree
WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models and solutions. We empower investors to shape their future and support financial professionals to better serve their clients and grow their businesses. WisdomTree leverages the latest financial infrastructure to create products that provide access, transparency and an enhanced user experience. Building on our legacy of innovation, we are also developing next-generation digital products and structures, including digital funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime™.
WisdomTree currently has approximately $81.3 billion in assets under management globally.
For more information about WisdomTree and WisdomTree Prime, visit: https://www.wisdomtree.com.
Visit us on Twitter at @WisdomTreeNews.
WisdomTree® is the marketing name of WisdomTree, Inc. and its subsidiaries worldwide.
Carefully consider the investment objectives, risks, fees and expenses of the digital funds before investing. To obtain a prospectus containing this and other important information, please visit https://www.wisdomtree.com/investments. Read the prospectus carefully before investing.
WisdomTree Digital Funds – Important Information
Each WisdomTree Digital Fund (each, a “Digital Fund”) invests at least 80% of its assets in either fixed-income securities (eg, US Treasury bonds) or equities (eg, US listed stocks) as further described in each Digital Fund’s prospectus. . Reference to “blockchain enabled” is intended to reflect the fact that each digital fund uses blockchain technology. The Digital Funds will not directly or indirectly invest in assets that rely on blockchain technology, such as cryptocurrencies.
A blockchain is an open, distributed ledger that digitally records transactions in a verifiable and immutable (i.e. permanent) manner using cryptography. A distributed ledger is a database where data is stored in a decentralized manner. Cryptography is a method of storing and transmitting data in a specific form so that only those for whom it is intended can read and process it. A blockchain stores transaction data in “blocks” that are linked together to form a “chain”, hence the name blockchain.
There are risks associated with investing, including possible loss of principal. Because each digital fund is new, it has no performance history. Blockchain technology is a relatively new and unproven technology, with little regulation. Blockchain systems can be vulnerable to fraud, especially if a significant minority of participants colluded to defraud the rest. Potential risks also include vulnerability to theft or unavailability, and future regulatory developments may affect viability. For the digital funds that invest in US financial obligations, such obligations can give relatively lower returns than other securities. Changes in the financial condition or credit rating of the US government may cause the value to decrease. Fixed-income securities are subject to interest, credit, inflation and reinvestment risks. When interest rates rise, the value of fixed income securities falls. For the digital funds that invest in US stocks, the trading prices of US equity securities fluctuate in response to a variety of factors, such as economic, financial or political events that affect the entire market, market segments or specific issuers. The types of US equity securities where a relevant digital fund can give a relatively lower return than other securities.
Cyber security attacks affecting a digital fund’s third-party service providers, the mobile phone application used to trade in digital fund shares, blockchain networks, or issuers of securities in which the digital fund invests could expose the digital fund to many of the same risks associated with direct cyber security breaches.
WisdomTree Digital Funds are distributed by Foreside Fund Services, LLC. Foreside is not affiliated with WisdomTree or any entity mentioned in the press release.
Warning regarding forward-looking statements
This press release may contain a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about WisdomTree’s ability to successfully implement its strategy related to digital assets and blockchain-based financial services, including WisdomTree Prime™, and achieve their goals. These forward-looking statements are based on WisdomTree’s management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions regarding future events. These forward-looking statements are not guarantees of future performance, conditions or results and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of WisdomTree’s management, which could cause actual results to differ materially from those discussed in the forward-looking statements. Forward-looking statements included in this release speak only as of the date of this release. WisdomTree undertakes no obligation to update its forward-looking statements to reflect events or circumstances after the date of this release, except as required by federal securities laws.
Contact information
Media relations
WisdomTree, Inc.
Jessica Zaloom
+1.917.267.3735
[email protected] / [email protected]
Investor Relations
WisdomTree, Inc.
Jeremy Campbell
+1.646.522.2602
[email protected]
1 Ownership of each digital fund’s shares will also be recorded – or digitized – on the Stellar or Ethereum blockchains as a secondary record of share ownership, with official ownership records maintained by the digital funds’ transfer agent.
2 Each Digital Fund is expected to be available for purchase and sale only through the WisdomTree Prime mobile application as facilitated by WisdomTree Securities, Inc., an affiliated broker. Broker commissions are expected to apply to all buy and sell orders of digital fund shares. WisdomTree Securities, Inc. is not involved in the registration of a digital fund’s shares on a blockchain or related record-keeping.
