WisdomTree, an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor has announced its physically-backed Bitcoin ETP has listed on Germany’s Börse Xetra. The WisdomTree Bitcoin ETP has a total expense ratio of 0.95% and is already listed on SIX, the Swiss Stock Exchange.
The listing of the WisdomTree Bitcoin ETP on Börse Xetra follows approval from the Swedish regulator to distribute this ETP across the European Union (EU).
Alexis Marinof, Head of Europe, WisdomTree, said: “Passporting WisdomTree Bitcoin in the EU was the ambition since we decided to launch a cryptocurrency ETP, and the evolving regulatory landscape has made this possible. The move represents an important milestone for our best-in-class product and one which will resonate with institutional investors concerned about the lack of EU-listed crypto ETPs and high fees associated with previous options. Our goal is to be the leader in crypto ETPs. We are in constant dialogue with clients and evaluating opportunities to build on WisdomTree Bitcoin and develop a suite of best-in-class products which leverage our heritage and expertise in physically-backed ETPs”.
The WisdomTree Bitcoin ETP provides investors with a simple, secure and cost-efficient way to gain exposure to the most liquid and popular cryptocurrency, Bitcoin. The ETP allows investors to access Bitcoin without the need to hold the cryptocurrency directly, store private access keys or interact with the blockchain or digital currency infrastructure in any way. Investors also receive access to institutional-grade storage solutions without needing to set it up with a custodian themselves.
To ensure the highest level of security, WisdomTree employs institutional-grade digital currency custodians who maintain highly secure cold storage facilities. In March 2021, WisdomTree onboarded Coinbase as a custodian for the WisdomTree Bitcoin ETP. The multi-custodian model builds on WisdomTree’s robust operating setup, adding greater flexibility and enhanced security to investors. The approach highlights WisdomTree’s focus on innovations that benefit investors.
WisdomTree Bitcoin has over $380m in assets under management and achieved its one-year track record in December 2020.
Jason Guthrie, Head of Capital Markets and Digital Assets, Europe, WisdomTree, added: “Since launching WisdomTree Bitcoin, institutional interest in cryptocurrencies, particularly Bitcoin, has grown significantly. As a new asset class, gaining credibility from institutional investors was never going to happen overnight. With Bitcoin passing $1tn in market cap, many institutional investors have started to acknowledge cryptocurrencies are here to stay and are doing their due diligence, as they consider making allocations to digital assets. The Xetra listing, along with the recent appointment of Coinbase Custody as our second custodian, will appeal to a wide range of professional investors and really demonstrates our commitment to delivering a superior investment experience to those allocating to our Bitcoin ETP”.
Bitcoin has become a hot investment topic, growing in popularity amongst professional investors in 2020 and 2021. A maturing market ecosystem, positive news from corporations and significant price increases have helped improve sentiment prompting investment managers to take a closer look at the asset class.
Jonathan Steinberg, CEO, WisdomTree, concluded: “We believe WisdomTree Bitcoin is the most investor-friendly Bitcoin ETP in the market, and we are thrilled to bring this ETP to more investors through its listing on Xetra. The growth of Bitcoin over the past 12 months reinforces our view that Bitcoin, digital assets, and blockchain technology will be increasingly important in financial services going forward. This announcement demonstrates our continued investment in this space to deliver value for our clients”.
WisdomTree Bitcoin is now passported in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, Netherlands, Norway, Spain and Sweden.
 The physically-backed ETP will track the spot price of Bitcoin, with WisdomTree purchasing Bitcoins and creating smaller sized shares, which can then be traded and redeemed on exchange.
 As at 12 April 2021.