WisdomTree, a global provider of financial products, has announced the launch of its newest Cryptocurrency Exchange Traded Product (ETP). WisdomTree Physical It is the lowest cost ETP. .
The fund is designed to provide investors with a “simple, safe, and cost-effective” way to find out the price of XRP. It is fully backed by XRP and “provides exposure to the spot price of XRP through an institutional-grade, physically backed structure.” Investors will also benefit from a dual custody model with a regulated custodian and the underlying assets professionally protected in 'cold storage'.
The fund manager explains this virtual currency as follows: “XRP is the native digital asset of the XRP Ledger (XRPL), a decentralized, permissionless, open-source blockchain. ) uses a consensus mechanism to validate transactions. This system is more efficient than Proof-of-Work (PoW) because it requires fewer hardware resources and consumes less energy.
Created in 2012 specifically for payments, XRP can settle transactions on a ledger in 3-5 seconds and was designed to be a faster, more sustainable alternative to Bitcoin. XRP can be sent directly without a central intermediary, making it a useful tool for quickly and efficiently bridging two different currencies. It is freely traded on the open market and is used in real-world applications to enable cross-border payments and microtransactions. ”
Following this announcement, WisdomTree's head of digital asset analysis, Dovil Silenskaite, said that due to increased risk appetite, exposure to altcoins such as XRP exceeds standard Bitcoin and Ether allocations. suggests that it is possible. In her view, XRP can be considered alongside these megacaps in a multi-asset portfolio to reduce exposure to a single token. “Cryptocurrencies account for more than 1% of market portfolios and should therefore be part of a comprehensive investment strategy. Cryptocurrencies, an asset class with low correlation to traditional asset classes, make diversification a This has the potential to increase risk-adjusted returns in multi-asset portfolios,” added Sirenskaite.
On the other hand, Alexis Marinoff, Head of Europe at WisdomTree, emphasized: “This new launch complements our existing range of physically backed crypto ETPs and provides investors with another solution to enhance their multi-asset portfolios. WisdomTree is an effective way to keep cryptocurrencies within the regulatory framework and is becoming the preferred means of accessing cryptocurrencies. I have years of experience. With over $100 billion in assets under management globally across ETFs and ETPs, investors in our crypto ETPs benefit from our global reach, scale and resources. ”
