Tanya Abrosimova
Independent Analyst
- WisdomTree got its Bitcoin-backed derivative listed on the Swiss bourse.
- Bitcoin ETP is deemed to attract institutional investors.
A US-based asset manager WisdomTree listed Bitcoin ETP on the Swiss bourse. The financial vehicle is linked to digital assets and physically-backed Bitcoin ETP `(WBTC).
The ETP is a derivative that allows investors to access the first cryptocurrency via a collateralized product denominated in USD. The company says that the instrument was designed to help institutional investors join the lucrative cryptocurrency market and reduce the risks of losses due to theft or operational errors.
The ETP is similar to physical gold ETP, which means it can be potentially interesting to a wide range of investors. Basically, with ETP products, investors get exposure to the cryptocurrency market and have no hustle with custody or underlying assets.
The company commented:
Similar to physical gold ETPs, investors in the WisdomTree Bitcoin ETP will have an entitlement to an amount of Bitcoin. Investors will be able to view each share’s coin entitlement and the total amount of Bitcoins secured in custody, corresponding to the total coin entitlement, on WisdomTree’s website.”
WisdomTree chose Swiss bourse because the US SEC had repeatedly delayed decisions on Bitcoin ETF products proposed by VanEck and Bitwise. The company foresees a strong interest in its product as many investors say away from cryptocurrencies due to their volatile nature.
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