Nine more blockchain-enabled funds from asset management WisdomTree, worth $82 billion, have received approval from the U.S. Securities and Exchange Commission (SEC).
None of these funds actually monitor cryptocurrency assets, but the company does use the Ethereum and Stellar blockchains to maintain a secondary record of share ownership, making them blockchain-enabled or, as WidsomTree calls them, “digital funds.”
The company said that the nine digital funds provide exposure to a variety of various asset classes, including stocks, commodities, and variable rate treasuries, in its Dec. 14 announcement of the SEC’s clearance. In the first quarter of 2023, the funds should become available via the WisdomTree Prime mobile app.
Will Peck, Head of Digital Assets at WisdomTree, said, “We think that blockchain-enabled finance has the potential to improve the investor experience via better liquidity, transparency, and standardization, which we hope to accomplish over time.
Three months ago, in September, the WisdomTree Short-Term Treasury Digital Fund (WTSYX), the company’s first digital fund, received SEC clearance.
Peck stressed that WisdomTree is looking at enhancing the investor experience via digital funds and blockchain technology in a blog post on September 26. This is especially true with respect to trading and transaction settlements.
“To provide a few instances, it’s amazing how certain blockchains can offer almost instantaneous peer-to-peer settlement finality on a 24/7/365 basis. In contrast to other potentially riskier settlement methods, including delivery vs. payment (DvP), blockchains may provide atomic settlement (where software assures assets are swapped in settlement).
According to WisdomTree, as of December 14, its listed funds in the United States and Europe managed assets totaling around $82 billion.
The company, like Grayscale Investments, has been working since early 2021 to introduce an exchange-traded fund (ETF) that would provide exposure to the spot price of Bitcoin (BTC).
The SEC has, however, repeatedly denied WidsomTree’s petitions, citing generic worries about fraud and market manipulation on BTC trading exchanges. It is also to note that a spot BTC ETF has not yet received SEC approval.
To watch the altcoin market, the company provides a variety of products. In March of this year, the company also introduced three crypto exchange-traded products (ETPs) backed by Solana (SOL), Cardano (ADA), and Polkadot (DOT).
