Amidst the growing trend of cryptocurrency, a financial institution named WisdomTree announced the creation of four cryptocurrency indices in the United States and Europe. The motive of this institution which has $76 billion invested assets under management was to provide diversified portfolio exposure to its investors. This was in alliance with Ritholtz Wealth Management, OnRamp, and Gemini. WisdomTree is set to launch the RWM WisdomTree Crypto Index in the United States whereas, in Europe, the WisdomTree Crypto Mega Cap Equal Weight (MEGA), WisdomTree Crypto Market (BLOC), and WisdomTree Crypto Altcoins (WALT) indices are thriving.
Crypto assets, layer one networks, layer two protocols, oracle networks, and decentralized finance protocols are a few focal points for the RWM WisdomTree Crypto Index. However, it is decided to have a primary focus on layer one networks, investing 64% of the fund’s assets into this.
The performance of the top 70% of cryptos by market capital will be traced by BLOC. WisdomTree’s Crypto Mega Cap Equal Weight (MEGA) is supposed to be an equal weight index for large-cap cryptocurrencies like Bitcoin (BTC) and Ether (ETH). WALT, another equally-weighted index, seeks to identify and track the performance of Altcoins. WALT will not comprise either BTC or ETH.
The words of Alexis Marinof, head of European operations at WisdomTree were:
“As interest in crypto assets remains high and becomes a bigger focus for investors, we will continue investing in our platform and capabilities to support investors in this fast-moving market.”
The Securities and Exchange Commission denied WisdomTree’s application to list a Bitcoin spot ETF in the United States stating its failure to meet multiple regulatory requirements including those under the Exchange Act. The asset manager, however, was successful in listing several exchange-traded products in Europe.