In the past week, digital asset investment products witnessed the most significant inflow so far this year at $193 million. Interesting, Europe saw a majority of the streamin this case about 76% of total premium income at $147 million.
Diversifying my roots
WisdomTree, a New York-based exchange-traded fund (ETF) asset manager, announced the launch of three new crypto ETPs this week. It would track the performance of Solana (SOL), Cardano (ADA) and Polkadot (DOT).
The new ETPs called WisdomTree Solana (SOLW), WisdomTree Cardano (ADAW) and WisdomTree Polkadot (DOTW) are said to give investors exposure to the prices of the underlying crypto assets. In that context, SOLW, ADAW and DOTW had a total expense ratio of 0.95% or an expense ratio of 95 basis points.
In addition, the pan-European exchange Euronext expected to register the crypto ETPs in Amsterdam and Paris on April 7, the announcement said. noted†
The company also added that investors can access the three digital assets through its diversified crypto basket ETPs – WisdomTree Crypto Market (BLOC) and WisdomTree Crypto Altcoins (WALT) and are available for sale in Austria, Belgium, Denmark, Finland. , France, Germany, Italy, Ireland, Luxembourg, Netherlands, Norway, Poland, Spain, Sweden and Switzerland.
Here comes the compensation war?
According to Bloomberg senior ETF analyst Eric Balchunas, the offering is poised to seriously undermine Swiss-based crypto ETP issuer 21Shares. charged its investors a management fee of 2.5%.
WisdomTree is launching Solana, Cardano and Polkadot ETPs in Europe at a 0.95% fee, seriously undercutting 21Shares’ comparable products that charge 2.5%. So let me get this straight: they’re already in a price war over Polkadot ETPs in Europe AND STILL NO (you know the rest) pic.twitter.com/pIvMPJDjXZ
— Eric Balchunas (@EricBalchunas) March 31, 2022
Indeed, other altcoins received worldwide attention. Earlier this month, Bloomberg reported that CoinShares had joined forces with crypto exchange FTX to launch a Solana-based ETP.
But where is the result?
While there is already stiff competition among ETP issuers, the US does not have a physically backed Bitcoin-listed fund. If this continues, the US could miss the ETF opportunity, while others would profit from it.