WisdomTree has launched a physically-backed bitcoin exchange-traded product (ETP) on the Swiss Stock Exchange.
The WisdomTree Bitcoin ETP provides investors exposure to the volatile cryptocurrency in a secure and cost-efficient way, according to the firm.
Investors would not need to hold the cryptocurrency directly or interact with the blockchain technology that underpins it.
Rafi Aviav, head of product development, capital markets and technology, at WisdomTree, said: “Cryptocurrencies are potentially the next asset class to benefit from increased interest when they become accessible in an ETP structure.”
According to Aviav, the bitcoin ETP offers a solution which addresses the difficulties investors face in accessing digital assets.
The ETP wrapper would have benefits including institutional-standard custody and more liquidity and transparency in trading, he added.
The strategy is similar to physical gold ETPs in the way that investors will be able to view each share’s coin entitlement and the total amount of bitcoins secured in custody.
WisdomTree said bringing cryptocurrencies into the ETP structure could also bring a centralisation of liquidity to the asset class and benefit the underlying digital asset.
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