ETF fund manager WisdomTree has announced that fees for the $325m WisdomTree Physical Bitcoin will be reduced to 0.35% from 0.95%. The move will see the ETP become the lowest cost physically backed Bitcoin exchange-traded product (ETP) in Europe that doesn’t participate in crypto lending, which exposes investors to additional risks.
The management expense ratio (MER) change is part of a repricing of WisdomTree’s entire crypto ETP range, which is already amongst the lowest priced in Europe. New MERs for the range will be effective from Monday 22 January 2024.
The affected ETPs are
WisdomTree was the first established ETP issuer to provide European investors with institutional-grade physically backed crypto exposure, following the launch of WisdomTree Physical Bitcoin in December 2019. It now has a thoughtfully curated range of eight physically backed crypto ETPs listed on Deutsche Börse Xetra, the Swiss Stock Exchange SIX, and Euronext exchanges in Paris and Amsterdam, providing European investors with convenient access to crypto in a familiar ETP wrapper.
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Alexis Marinof, Head Europe at 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.”
Physically-backed crypto ETFs
Physically backed crypto ETPs from WisdomTree provide investors with a simple, secure and a low cost way to gain exposure to a range of cryptocurrencies including Bitcoin, Ether, Solana, Cardano, Polkadot and a selection of diversified crypto baskets.
The ETPs allow investors to access crypto without the need to hold cryptocurrencies directly, store private access keys or interact with the blockchain or digital currency infrastructure in any way. Investors also receive access to institutional-grade storage solutions without needing to set it up with a custodian or maintain a digital wallet themselves.
Marinof added: “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 the fund manager 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,” Marinof added. “This move reinforces our commitment to supporting the needs of investors through best-in-class products, client servicing and research.”
WisdomTree’s crypto ETP range taps into its tradition of innovation and leverages the firm’s deep expertise in physically backed ETPs, gained from 20 years of experience providing and managing physical gold ETPs. WisdomTree’s European crypto ETPs are passported for sale in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, Poland, Netherlands, Norway, Spain, Sweden, and Switzerland.
