Cardano, Solana, and Polkadot take a major step toward institutional adoption. Covered: WisdomTree Launches Crypto ETPs in Europe Institutions Now Want More than BTC and ETH WisdomTree Launches Crypto ETPs in Europe Just a few years, it would be hard to imagine an ETF for Bitcoin or even Ethereum. While the US has been slow […] The post WisdomTree Launches Cardano, Solana ETF Product, Including Staking appeared first on CryptosRus.

WisdomTree Launches Cardano, Solana ETF Product, Including Staking

Cardano, Solana, and Polkadot take a major step toward institutional adoption.

Covered:

  • WisdomTree Launches Crypto ETPs in Europe
  • Institutions Now Want More than BTC and ETH

WisdomTree Launches Crypto ETPs in Europe

Just a few years, it would be hard to imagine an ETF for Bitcoin or even Ethereum. While the US has been slow to roll out spot ETFs, where the actual asset is traded and custodied, Europe has not been. Now, let alone Bitcoin and Ethereum, we see ETFs rolled out in Europe for alt-Layer 1’s, in this case, Cardano, Solana, and Polkadot.

Today it was announced that WisdomTree investments, with over $77 billion in assets under management, is launching exchange traded products (ETPs) for Cardano, Solana, and Polkadot. The products will even offer staking rewards to investors. Per the announcement, “the WisdomTree Cardano ETN (ADAW), the WisdomTree Polkadot ETN (DOTW), and the WisdomTree Solana ETN (SOLW) are listed on Six Swiss Exchange and the Boerse Frankfurt with total expense ratios (TERs) of 0.95%.”

Credit: Cryptolaxy

This takes WisdomTree’s crypto ETP total to eight when just two years ago, they offered zero. As mentioned above, staking will be offered to investors, allowing them to contribute their coins to “large pools of assets in exchange for rewards. Typically, these are then be passed on to the investor via additional returns or a reduction in the management fee.”

Jason Guthrie, head of digital assets for Europe at WisdomTree, said that these three crypto assets had the requisite liquidity needed for “institutional use” and also have “clear uses cases.” As for why WisdomTree is branching into alt-coins, Alexis Marinof, head of Europe for WisdomTree, said:

Institutions Now Want More than BTC and ETH

“While bitcoin and ethereum grab the headlines, altcoins are now viable options for many institutional investors, providing more options to diversify their crypto holdings just like they would with any other asset class.” This is a major nod to ‘alt-coins’, as many have criticized a lack of liquidity as a reason for them not being ready for institutions. As crypto waxes and wanes between trends, it is clear that smart contracts layer-1’s are going nowhere.

Crypto ETPs are mainstream investment vehicles that offer seamless exposure to crypto assets and are popular in Europe. “ETPs trade on exchanges similar to stocks, meaning their prices can fluctuate from day-to-day and intraday. However, the prices of ETPs are derived from the underlying investments that they track.”

ETFs are actually a financial product that fall under the umbrella of ETPs. These financial products can be complex and include derivatives to create a synthetically traded product. “Some ETPs intentionally gear the investment through borrowing or futures, which increases notional exposure.” However, in light of WisdomTree stating they will offer staking rewards, it is clear that this product will involve the settled, custodied crypto assets, which is good for holders.

If you are holding ADA, SOL, or DOT, this should give you confidence that a major player like WisdomTree has evaluated that these crypto assets have the liquidity, use case, and stability to offer as an institutional product. One thing is definitely clear: institutions are bullish on not only Bitcoin and Ethereum, but crypto as a whole, and blue chip Layer-1’s like the aforementioned trio will continue to be the fulcrum of the crypto asset class.

The post WisdomTree Launches Cardano, Solana ETF Product, Including Staking appeared first on CryptosRus.