WisdomTree to Liquidate Five ETFs by October 20, 2023

WisdomTree, Inc. (NYSE: WT), a prominent global financial entity, has declared its intention to close and liquidate five of its ETFs. The ETFs in question will cease accepting creation orders after October 20, 2023, marking the same day as their final trading day on their respective exchanges.

Shareholders who retain their ETF shares beyond this date will undergo an automatic cash redemption based on the ETF’s net asset value (NAV). This redemption is anticipated to be relayed to shareholders via their brokers or other financial intermediaries around October 30, 2023, subsequent to the last operational day slated for October 27, 2023.

The ETFs slated for closure and liquidation are:

  1. WisdomTree Chinese Yuan Strategy Fund** (CYB) – NYSE Arca
  2. WisdomTree India ex-State-Owned Enterprises Fund** (IXSE) – NYSE Arca
  3. WisdomTree U.S. Growth & Momentum Fund** (WGRO) – NASDAQ
  4. WisdomTree Germany Hedged Equity Fund** (DXGE) – NASDAQ
  5. WisdomTree Growth Leaders Fund** (PLAT) – NYSE Arca

Prospective investors are urged to meticulously evaluate the investment goals, risks, charges, and expenses of the Funds prior to investing. A comprehensive prospectus detailing this information can be accessed at WisdomTree.com/investments or by calling 866.909.9473.

It’s imperative to note that investing carries inherent risks, including potential principal loss. Foreign investments, in particular, are fraught with currency, political, and economic risks. Single-country, sector-focused funds or those emphasizing smaller company investments may witness heightened price volatility. The prospectus provides an exhaustive risk profile for each Fund.

WisdomTree’s offerings encompass a diverse range of exchange-traded products (ETPs), models, and blockchain-enabled solutions. With a current global assets under management tallying approximately $95.8 billion, the firm is at the forefront of financial innovation. Their recent endeavors include blockchain-native digital wallets like WisdomTree Prime™ and blockchain-enabled mutual funds.

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WisdomTree Appoints Digital Transformation Expert Rilla Delorier to Board

WisdomTree, Inc. (NYSE: WT), a global financial innovator with a diverse range of exchange-traded products (ETPs) and a current asset management of approximately $94 billion, has officially announced the appointment of Rilla Delorier to its Board of Directors. Delorier, an accomplished leader with over 30 years of executive experience, is recognized for her leadership in digital transformation within the banking sector and her roles in various financial and tech firms. Her achievements have earned her a spot among the “25 Most Powerful Women in Banking” by American Banker.

This appointment comes at a pivotal time for WisdomTree. The firm has been actively pursuing the introduction of a spot bitcoin ETF, reflecting the growing interest and confidence in the potential of cryptocurrency-based financial products. Despite their enthusiasm, WisdomTree faced challenges in the past.

Their applications for a bitcoin ETF in 2021 and 2022 were met with rejections from the U.S. Securities and Exchange Commission (SEC). The regulatory body cited concerns over investor protection and public interest. However, undeterred by these setbacks, WisdomTree has drawn inspiration from their successful product launches in the more accommodating European markets.

Armed with this experience and new measures in their updated filing, the firm aims to address the SEC’s concerns, particularly those related to market manipulation and investor safety.

Win Neuger, the Chair of the WisdomTree Board, commented, “Rilla is a powerhouse of digital transformation in financial services. Her proven ability to foster innovation and optimize operations will be invaluable as we navigate the industry’s evolving landscape, especially in the realm of blockchain-enabled finance.”

Jonathan Steinberg, the Founder and CEO of WisdomTree, emphasized the timeliness of Delorier’s appointment. He noted, “As we witness an unprecedented momentum in ETP flows and lead the shift towards tokenization, Rilla’s expertise in digital innovation is a perfect fit for our Board.”

Delorier expressed her enthusiasm, stating, “WisdomTree stands out as a pioneer in financial services. Their innovative approach, especially with the launch of WisdomTree Prime™ and their ongoing efforts in the Bitcoin ETF space, positions them to lead the market expansion in the upcoming years.”

WisdomTree is also venturing into next-gen digital products, including digital funds, tokenized assets, and their blockchain-native digital wallet, WisdomTree Prime™.

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WisdomTree Third-Quarter Crypto Assets’ AUM Drop 36% As Market Losses Continue

WisdomTree, a financial investment company based in New York, on Friday released its latest earning report showing the asset manager’s cryptocurrency holdings have declined by 36% and now stands at $178 million in the third quarter as of September 30.

WisdomTree said its holdings saw a decline of $87 million (36%) in the third quarter owing to the market downturn. According to the report, the company held $265 million in crypto assets at the end of the second quarter while its holding stood at $178 million at the end of the third quarter (July, August, and September).

The report indicated that the company’s crypto holdings have now reduced 56% since January, from $406 million. Overall, WisdomTree said it had $70.9 billion in assets under management at the end of this year’s third quarter.

The decline in holdings reflects the fall in crypto prices and the global crypto market cap, which has declined from $2.3 trillion in January to $1.02 trillion today.

Jarrett Lilien, WisdomTree’s President, and Chief Operating Officer said that the firm has not been deterred by the market crisis, saying that the company’s approach is to bring crypto mainstream.

WisdomTree is one of the several crypto asset managers impacted by the dull and long crypto winter. Several listed crypto business firms have lost interest from investors and faced severe downgrades from the brokerages at large.

The performance of these firms (such as PayPal, and Coinbase, among others) has been highly disappointing, with some (like BlockFi and others) recently announcing reductions of their headcounts while others (like Voyager Digital, Celsius Network, Arrow Three Capital, and others) announced bankruptcy protections.

A consistent increase in outflows from crypto investment products since the TerraUSD collapse has raised concerns over the survival and sustainability of many crypto asset management firms.

While the market downturn has made it difficult for small crypto funds to survive, it has created an opportunity for leading players in the asset management sector to rethink their risk management strategies.

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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 on Monday that it has added Polygon (MATIC) and Avalanche (AVAX) to indices at two physically backed crypto basket exchange-traded products (ETPs), the WisdomTree Crypto Market (BLOC) and the WisdomTree Crypto Altcoins (WALT).

The firm added Polygon and Avalanche to the WisdomTree Crypto Market (BLOC) and the WisdomTree Crypto Altcoins (WALT).

BLOC and WALT are already trading on the German stock exchange Börse Xetra, the France stock exchange known as ‘the Euronext Paris,’ Amsterdam stock exchange and the Swiss stock exchange SIX.

The two crypto ETPs have a sales pass for the whole European Union.

Alexis Marinof, head of Europe at WisdomTree, talked about the development: “Our crypto baskets are designed to give investors exposure to the changing environment of crypto assets. Additional coins such as MATIC and AVAX can be added to the indexes through quarterly resets. Before being included in our indexes, coins are evaluated by a committee, and they must meet several criteria, including sufficient liquidity levels, practical use cases, and significant mass.”

Marinof further elaborated: “Our monitoring and rebalancing allow investors to conveniently allocate some of our largest and most liquid investable crypto assets within a familiar structure without having to open or insure individual portfolios or any individual currency to stake.”

The BLOC is a free-float market capitalization-weighted ETP that offers exposure to a diversified basket of cryptocurrencies representing about 65% ​​of the crypto market capitalization. The product is designed for investors who want broad exposure to the liquid and established assets of the crypto market. With the new additions, the basic BLOC index is now constituted of Bitcoin, Ethereum, Cardano, Bitcoin Cash, Litecoin, Polkadot, Solana, Polygon, and Avalanche.

On the other hand, the WALT is a market capitalization-weighted free-float ETP that enables exposure to a diversified basket of altcoins. The ETP offers exposure to major crypto assets, excluding Bitcoin and Ethereum. It was designed for investors who already have exposure to these major cryptocurrencies and want to diversify their exposure without modifying 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-basket ETPs.

Crypto ETPs Blossoming in Europe

The crypto ETP market in Europe is becoming more competitive than in North American and Latin America. Firms are issuing more varieties of crypto ETPs because of increasing demand.

In February, Fidelity International listed the Fidelity Physical Bitcoin ETP on Germany’s Deutsche Börse stock 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, Cardano, and Polkadot in Europe.

In 2019, WisdomTree launched its first crypto-asset ETP 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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WisdomTree Expands Crypto Offerings in Europe, Launching Cardano, Polkadot & Solana ETPs

WisdomTree Investments, Inc., a New York-based exchange-traded fund and exchange-traded product provider and asset manager, announced on Tuesday that it has launched three new crypto exchange-traded products (ETPs) backed by Solana (SOL), Cardano (ADA), and Polkadot (DOT) in Europe.

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The three new physically-backed cryptos ETPs include WisdomTree Solana (SOLW), WisdomTree Cardano (ADAW), and WisdomTree Polkadot (DOTW). WisdomTree said that it designed the ETPs to provide investors in Europe with another option to enable them to gain exposure to the price of Polkadot, Solana, and Cardano via regulated exchanges.

The firm disclosed that it has listed the three ETPs on major European digital exchanges, including Deutsche Boerse’s Xetra, the Swiss SIX exchange, and the Swiss Stock Exchange. WisdomTree further stated that it plans to list the crypto ETPs on the pan-European exchange Euronext to be available in Amsterdam and Paris at the end of the month.

DOTW, ADAW, and SOLW have a total expense ratio of 0.95% and are available for sale in most of the European countries, including Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, WisdomTree said.

Alexis Marinof, WisdomTree’s Head of Europe, talked about the development and stated that the new offering aims to meet the rising demand from institutional investors to diversify their crypto portfolio. “While Bitcoin and Ethereum grab the headlines, altcoins are now viable options for many institutional investors, providing more options to diversify their crypto holdings just like they would with any other asset class,” Marinof elaborated.

Supporting Investors on Their Journey into Digital Assets

Listing crypto ETPs on stock exchanges has continued to open up more access points for investors to conveniently trade cryptocurrencies. Since WisdomTree launched its digital assets platform in 2019, the company has witnessed a lot of development in the space. The continued product launch represents the growing acceptance of crypto, the evolving European regulatory landscape, and demonstrates that digital assets are here to stay.

In November last year, WisdomTree launched three crypto basket exchange-traded products in Europe. The firm listed the three crypto ETPs (the WisdomTree Crypto Market (BLOC), WisdomTree Crypto Altcoins (WALT), and WisdomTree Crypto Mega Cap Equal Weight (MEGA) on Swiss stock exchange SIX and Frankfurt-based Börse Xetra.

BLOC offers exposure to the most established crypto assets such as Bitcoin, Ether, Bitcoin Cash, and Litecoin. WALT is focused on altcoins such as Cardano, Bitcoin Cash, Litecoin, Polkadot, and Solana. MEGA focuses solely on Bitcoin and Ether as the market’s two “mega-cap” assets.

The funds are passported for sale across 12 European Union countries plus Switzerland and Norway.

In June last year, WisdomTree listed its physically-backed Bitcoin and Ether ETPs on Euronext exchanges in Paris and Amsterdam. The move came after the firm listed such products on Germany’s Börse Xetra and SIX, the Swiss Stock Exchange.

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WisdomTree launches four cryptocurrency indices in US and Europe

On Friday, WisdomTree, a financial institution with over $76 billion in assets under management, announced it had created four cryptocurrency indices in the United States and Europe to provide diversified portfolio exposure to investors. The move comes in collaboration with Ritholtz Wealth Management, OnRamp, and Gemini.

In the U.S., WisdomTree will launch the RWM WisdomTree Crypto Index. And in Europe, WisdomTree is advancing the WisdomTree Crypto Mega Cap Equal Weight (MEGA), WisdomTree Crypto Market (BLOC), and WisdomTree Crypto Altcoins (WALT) indices.

The RWM WisdomTree Crypto Index will focus on crypto assets, layer one networks, layer two protocols, oracle networks, and decentralized finance protocols, among others. But it will have a heavy emphasis on layer one networks, with 64% of the fund’s assets going into this category.

Meanwhile, MEGA will act as an equal weight index for large-cap cryptocurrencies like Bitcoin (BTC) and Ether (ETH). As for BLOC, it will track the performance of the top 70% of cryptos by market cap. Lastly, WALT is another equally-weighted index that seeks to track the performance of altcoins, and will not hold either BTC or ETH.

Related: Grayscale tells SEC ‘no basis’ to approve Bitcoin futures ETFs and not spot ETFs

Alexis Marinof, head of European operations at WisdomTree, issued the following statement with regards to the development:

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.

WisdomTree’s application to list a Bitcoin spot ETF in the United States was rejected earlier this week after the Securities and Exchange Commission determined that the proposed fund failed to meet various regulatory requirements, including those found under the Exchange Act. However, the asset manager succeeded in listing several exchange-traded products in Europe.