In its bid to offer a diversified crypto exposure to investors, New York-based asset manager, WisdomTree has announced on Friday, 3rd December, the creation of 4 cryptocurrency indices in the U.S and Europe. This move saw WisdomTree partnering with Gemini and OnRamp.
The financial institution which boasts of more than $76 billion in assets under management (AUM), will be launching only the RWM WisdomTree Crypto Index in the United States.
For Europe however, it will go ahead with the other three. They are; the WisdomTree Crypto Mega Cap Equal Weight (MEGA), WisdomTree Crypto Altcoins (WALT) and WisdomTree Crypto Market (BLOC) indices.
WisdomTree Cryptocurrency Indices Explained
While the RWM WisdomTree Crypto Index is intended to focus on cryptocurrency assets, L1 networks, L2 protocols, DeFi protocols, and many more, its main focus will be on the layer one (L1) networks. As it is, 64% of the fund’s assets I’d already earmarked for the L1 category.
MEGA on the other hand, will be an equal weight index for cryptocurrencies with large capitalization, including Bitcoin (BTC) and Ether (ETH).
BLOC will also be tracking the performance of all cryptocurrencies in the top 70% by market capitalization. And finally, WALT will keep track of the performance of altcoins, being another equally-weighted index.
Speaking about the launch, the head of European operations at WisdomTree, Alexis Marinof, the efforts are in line with the fast-moving market, even as crypto assets continue to draw the attention of investors. He added that the firm will continue investing in itself and its ability to support investors in the fast-paced market.
Meanwhile, several efforts by various firms to list a Bitcoin spot ETF in the United States have gotten disapproved after the Securities and Exchange Commission (SEC) cited its rejection was based on the failure of the proposed fund to meet many regulatory requirements, including those under the Exchange Act. And just like Valkyrie, WisdomTree was also applying for one.