WisdomTree added Polygon (MATIC) and Avalanche (AVAX) to the indexes replicated by ETPs (exchange-traded products) on baskets of physically hedged cryptocurrencies, WisdomTree Crypto Market (BLOC) and WisdomTree Crypto Altcoins (WALT). The two cryptocurrencies are listed on the Börse Xetra and Euronext lists in Paris and Amsterdam and on the Swiss stock exchange SIX. ETPs are passported for sale through the European Union.
Alexis Marinof, Head of Europe di WisdomTree, said: “Our digital asset baskets are designed to give investors exposure to the ever-changing cryptocurrency landscape. Through quarterly rebalancing, digital currencies such as MATIC and AVAX can be added to the indices. Before being included in our indices, cryptocurrencies are reviewed by a committee and must meet a number of criteria, including sufficient liquidity, practical use case and critical mass. Our screening and rebalancing allow investors to effectively allocate some of the largest and most liquid crypto assets currently investable, within a familiar product structure, without the need to build and protect individual portfolios or express beliefs about individual currencies. “.
Polygon is an Ethereum sidechain based on an open source system. It was designed to make transactions faster and cheaper, taking advantage of the security offered by the Ethereum blockchain. The Polygon token, MATIC, fulfills several functions in the Polygon ecosystem, such as voting and paying gas commissions. Polygon has focused its efforts on supporting the development of a specific scalar infrastructure for the Ethereum network and other EVM-compatible blockchains.
Avalanche is a platform, based on an open source system, for the launch of decentralized applications and the implementation of corporate blockchains, in a single, interoperable and highly scalable ecosystem. Avalanche is a decentralized blockchain with smart contract functionality that aims to be eco-friendly, low-cost, and provide fast transactions. AVAX is the native token of the Avalanche platform. It is a limited asset, characterized by scarcity, used to pay commissions, protect the platform through staking and provide a basic unit of account among the multiple subnets created on Avalanche.
WisdomTree Crypto Market (BLOC)
BLOC is a free float market capitalization weighted ETP. It provides exposure to a diversified basket of crypto assets they represent approximately 65% of the market capitalization of cryptocurrencies. This product is designed for those looking for broad exposure to the liquid and established sectors of the cryptocurrency market. The underlying index of the ETP is now comprised of Bitcoin (BTC), Ethereum (ETH), Cardano, Bitcoin Cash, Litecoin, Polkadot, Solana, Polygon and Avalanche. Due to the relatively large market capitalizations of BTC and ETH, the combined weighting of both assets in the ETP is capped at 75%. The individual components have a maximum weighting limit of 45% and a minimum allocation of 2.5% per crypto asset. BLOC has a total expense ratio (TER) of 1.45%.
WisdomTree Crypto Altcoins (WALT)
WALT is a free float market cap weighted ETP that provides exposure to a diversified basket of altcoins. The ETP provides exposure to major cryptocurrencies, excluding Bitcoin and Ethereum, and is designed for investors who already have exposure to these mega-cap currencies and want to diversify it without changing existing holdings. The underlying index of the ETP is now comprised of Cardano, Bitcoin Cash, Litecoin, Polkadot, Solana, Polygon and Avalanche. The individual components have a maximum weighting limit of 50% and a minimum allocation of 2.5% per crypto asset. WALT has a TER of 1.45%.