New Bitcoin Exchange Traded Product Launches on Switzerland ‘s SIX Stock Exchange
New York-based WisdomTree launched a new bitcoin exchange traded product (ETP) on Switzerland’s SIX stock exchange. This product, which is physically backed by crypto, will compete on SIX with Amun AG’s similarly-designed bitcoin ETP, and is settled in the underlying asset.
WisdomTree, which has provided gold-based ETPs in Europe since 2003, said its Bitcoin ETP provides investors, “a simple, secure and cost-efficient way to gain exposure to Bitcoin while utilising the best of traditional financial infrastructure and product structuring.” Under the WBTC ticker, it is listed at a total expense ratio of 0.95%.
The firm uses “institutional grade storage solutions” so investors don’t have to hold Bitcoin while maintaining entitlement to the underlying cryptocurrency, as reported by CoinDesk.
“We have been monitoring cryptocurrencies for some time and … have seen enough to believe that digital assets, like Bitcoin, are not a passing trend and can play a role in portfolios,” said Alexis Marinof, head of Europe at WisdomTree.
According to Marinof, WisdomTree sees “many parallels” between commodities and cryptocurrencies.
“[W]e see blockchain technology and digital currencies as being transformative for the asset management industry,” said WisdomTree CEO Jonathan Steinberg. “Much like how the ETP structure has outshone the mutual fund structure in significant ways, blockchain and cryptocurrencies have the potential to change how investors participate in financial markets, globally.” Swissquote, an online Swiss bank, will be the custody partner for the product.
In November 2018, SIX listed multiple crypto-based exchange-traded products, and has also tested blockchain integration for its digital asset trading platform, called “SDX”, which is due to launch in Q4 2020.