One of the largest asset managers in the world, the WisdomTree, based in New York recorded its first Bitcoin Exchange-Traded Product (ETP) on the SIX Swiss exchange. This was announced by the company in the context of a yesterday’s press release.
The New York-based WisdomTree, one of the largest providers of Exchange Traded Funds (ETFs) in the United States, has yesterday launched a new Bitcoin Exchange-Traded Product (ETP) on the SIX Swiss exchange. This is the first product of the company, which is pursuing Bitcoin, and investors the opportunity to invest in the crypto currency without the need of a Wallet to manage.
Such products open up Bitcoin-investment theory, to Mainstream retailers by bypassing the need for individual private key, and the likelihood of theft, and cyber-attacks to reduce. According to the announcement of the WisdomTree all of the Bitcoin funds in support of the ETP will be stored offline in a Cold Wallet.
In an Interview with Reuters, Jason Guthrie, head of the capital market Department of the company, WisdomTree, said:
There is a demand for[Bitcoin-investments] in an exchange-traded Format. There are many customers who can either trade in any Futures or physically backed exchange traded product, in order to be operationally efficient.
ETPs differ slightly from the ETFs with which Bitcoin, and other crypto-lovers have become in the last few years is undoubtedly familiar, since such proposed products have found attention. Simply put, ETFs are a type of ETP, although ETFs are subject to different legal requirements and, therefore, a stronger regulatory control. Both products offer the promise of a large, institutional investment in the world of Bitcoin and other crypto-currencies, the WisdomTree strong demand is expected.
We are watching crypto currencies for some time and are pleased to allow investors access to this emerging asset class,
Alexis Marinof, Head of Europe at WisdomTree said in a statement.
We have seen enough to believe that digital Assets, like Bitcoin, are not a temporary Trend, and a role in Portfolios can play.
WisdomTree currently manages the world more than $ 60 billion in assets, according to Reuters. Financial instruments are based on Bitcoin are based becoming increasingly popular as the demand among institutional investors continues to increase. Nevertheless, there are still some obstacles that holds back investors from investing in the market. A secure storage is one possibility in the context of a background Custody solution or appropriate to hedge the equity with warrants or a Deposit insurance by the providers themselves or external service providers.
Furthermore, the legal framework conditions are not clarified in all of the sufficiently, so that investors see in some of the countries with difficulties in the mere possession or subsequent taxation faced. It remains to be seen whether it will be in a timely manner provide a uniform regulatory framework in the EU and the United States.
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