WisdomTree launches ether ETP in Europe

Apr 29th, 2021 | By | Category: Alternatives / Multi-Asset

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WisdomTree has expanded its range of digital asset investment products in Europe with the launch of a directly backed ether ETP.

WisdomTree launches ether ETP in Europe

Jason Guthrie, Head of Capital Markets and Digital Assets in Europe, WisdomTree.

The WisdomTree Ethereum ETP has listed in euros on Deutsche Börse Xetra (WETH GY) and in euros and US dollars on SIX Swiss Exchange (ETHW SW).

Ether is the second-largest cryptocurrency globally and the native token for the Ethereum blockchain, a well-established, open-ended decentralized platform and the leading venue for the deployment of smart contracts.

ETPs have emerged as the preferred structure for institutional investors allocating to digital assets as they fit seamlessly within current portfolio management structures while avoiding the inconvenience, technical challenges, and associated risks of self-custody within a digital wallet.

WETH is referenced to the CME CF Ether-Dollar Reference Rate, a daily reference rate of the US dollar price of one Ether as of 4:00 p.m. London time. The rate is calculated by CME Group and derived from ether pricing on major cryptocurrency exchanges Bitstamp, Coinbase, Gemini, itBit, and Kraken.

Each share of the ETP is fully backed by 0.01 ether at launch with holdings custodied at Swissquote Bank and Coinbase Custody. According to WisdomTree, this multi-custodian model serves to provide greater liquidity for the underlying digital currency. Investors are able to view each share’s coin entitlement and the total amount of ether secured in custody, on WisdomTree’s website.

The ETP comes with an expense ratio of 0.95% which matches the cost of WisdomTree’s directly backed bitcoin product, the $340 million WisdomTree Bitcoin ETP (BTCW SW). It has been passported for distribution in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, Netherlands, Norway, Spain, and Sweden.

The ETP will line up against a number of other ether ETPs available in Europe including the $230m 21Shares Ethereum ETP (21XE GY), which comes with an expense ratio of 1.49%, the $40m ETHetc – ETC Group Physical Ethereum ETC (ZETH GY), also at 1.49%, and the $120m CoinShares Physical Ethereum (ETHE SW), which costs 1.25%.

Jason Guthrie, Head of Capital Markets and Digital Assets in Europe, WisdomTree, commented: “The expansion of our digital assets range is a significant milestone and further demonstrates our commitment to delivering innovative digital asset solutions for institutional investors. ETHW is a best-in-class ETP, complementing our market-leading bitcoin ETP and launched at a time when interest in digital assets is at its highest. With this increase in popularity, institutional investors are doing their due diligence on the most liquid cryptocurrencies and we expect the pace of adoption across these to ramp up as the opportunity in digital assets becomes more compelling.”

Alexis Marinof, Head of Europe, WisdomTree, added: “Since launching our first digital asset ETP we’ve seen the level of interest amongst institutional investors grow significantly. The asset class is still in its infancy but 2020 was an important year, and institutional investors are waking up to the potential digital assets can bring to portfolios as a diversifier. Our digital assets platform is growing alongside institutional demand. By adding ETHW to our range, we now have the products and research capabilities to support institutional investors whether they are considering making their first allocations to digital assets or looking to diversify their exposures.”

Jonathan Steinberg, CEO of WisdomTree, said: “Our digital assets initiative reinforces and expands upon our core business strengths while reflecting what we see as the future of investment management. The latest developments across our digital assets platform position us well for success and reflect our commitment to this evolving asset class which is quickly becoming top of mind for institutional investors globally.”

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