WisdomTree slashes fees on Europe-listed crypto ETPs

Jan 22nd, 2024 | By | Category: Alternatives / Multi-Asset

WisdomTree has drastically reduced the management expense ratios (MERs) across its entire range of physically backed crypto ETPs available in Europe.

Alexis Marinof, Head of WisdomTree Europe

Alexis Marinof, Head of Europe, WisdomTree.

Debuting its digital asset investment solutions in Europe in December 2019, WisdomTree now boasts a line-up of five single-crypto ETPs (providing direct exposure to Bitcoin, Ether, Solana, Cardano, and Polkadot), as well as three multi-crypto strategies.

These products, listed on Deutsche Börse Xetra, SIX Swiss Exchange, and Euronext exchanges in Paris and Amsterdam, offer European investors a streamlined and secure method to invest in cryptocurrencies without the complexities of direct holding, key storage, or blockchain interaction. The underlying crypto assets are securely kept in custody using institutional-grade ‘cold storage’ solutions.

Notably, WisdomTree’s fee reductions include lowering the MER of the WisdomTree Physical Bitcoin (BTCW) to just 0.35%, a significant discount from its previous price of 0.95%. The move positions BTCW as the most competitively priced, physically backed Bitcoin ETP in Europe that is not engaged in crypto lending.

The WisdomTree Physical Ethereum (ETHW), meanwhile, has seen its MER slashed similarly from 0.95% to 0.35%, while the WisdomTree Physical Solana (SOLW), WisdomTree Physical Cardano (ADAW), and WisdomTree Physical Polkadot (DOTW) are all now priced at 0.50%, also down from 0.95%.

Turning to WisdomTree’s multi-crypto investment offering, the WisdomTree Physical Crypto Mega Cap Equal Weight (MEGA), which delivers equally weighted exposure to Bitcoin and Ether, has seen its MER cut from 0.95% to 0.40%.

Finally, the WisdomTree Physical Crypto Market (BLOC), which tracks the market cap-weighted performance of the large-cap segment of the crypto market, and the WisdomTree Physical Crypto Altcoins (WALT), which covers large-cap crypto assets excluding Bitcoin and Ether, have both seen their MERs reduced to 0.70% from 1.45%.

Commenting on the fee reductions, Alexis Marinof, Head of Europe, WisdomTree said: “Institutional and retail demand for crypto has once again been a prominent topic of discussion. The launch of spot bitcoin exchange-traded funds (ETFs) in the US has captured a lot of attention in Europe, yet many investors aren’t aware that they’ve been able to access the same spot crypto exposure through physically backed ETPs since 2019. European investors interested in spot bitcoin or specific crypto exposures can gain access through our institutional-grade and low-cost ETPs which are available on the major regulated European exchanges.

“The launch of spot bitcoin ETFs in the US is helping the crypto market to evolve as the asset class continues to stake a claim for a place in client portfolios. WisdomTree’s diversified and scalable business allows us to offer crypto ETPs with highly competitive fees while delivering superior products that do not participate in the risky practice of crypto lending. The asset class is evolving and we are leading the way in Europe by reducing fees of our physically backed crypto ETPs. This move reinforces our commitment to supporting the needs of investors through best-in-class products, client servicing, and research.”

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