The new WisdomTree Blockchain UCITS ETF strategy provides targeted access to companies specializing in blockchain technologies and cryptocurrencies.
WisdomTree, the issuer of listed index funds (ETFs) and exchange traded products (ETPs), has announced the launch of the WisdomTree Blockchain UCITS ETF (WBLK). Listed on the Börse Xetra and Borsa Italiana, WBLK aims to track the price and return, gross of management fees, of the WisdomTree Blockchain UCITS Index (the “Index”). The total ETF for this ETF is 0.45%. WLBK will be listed on the London Stock Exchange on 14 September 2022.
The index was developed by WisdomTree, a company known for its innovative capabilities and historical track record in indexing. It is designed to gain visibility into the performance of companies specializing in blockchain and cryptocurrency technologies, while still being compatible with WisdomTree’s ESG criteria.
This ETF complements the exposed range of single cryptocurrencies and cryptocurrency baskets already available on WisdomTree. It is another way for investors to gain exposure to the potential growth of digital assets and blockchain infrastructure.
WBLK represents a new stage in the experience developed by WisdomTree on digital assets, which began with the launch of one of the world’s first ETPs offering physical exposure to a digital asset in 2019. This experience was subsequently consolidated by building a global team specialized in assets. and collaborating with leaders of the blockchain and cryptocurrency ecosystem. It is combined with WisdomTree’s knowledge and experience in creating award-winning themed ETFs.
“Due to their high growth potential, investors often view investments in digital or blockchain-related assets as thematic investments,” said Pierre Debru, Head of Quantitative Research and Multi-Asset Solutions for WisdomTree in Europe. “It’s a good approach to take to conceptualize the exhibits in this area. The diversity of blockchain applications and use cases is becoming increasingly evident and can be seen in the areas of entertainment, cloud storage and gaming, among others. Although Bitcoin is the first blockchain created with the aim of being a revolutionary means of payment, the ecosystem has evolved far beyond the “sphere of payments”. Over the years, blockchain technology has expanded into smart contracts and non-fungible token custody (NFT). The future looks bright for companies that have invested in blockchain, even if we are only in the early stages of their growth. “
Blockchain is the distributed ledger technology behind digital assets. It is often described as a distributed database where information is stored using digital signatures. Blockchain technology is an ongoing revolution and proves to be of great use when a transparent and immutable digital record of information is required. The range of potential applications of this technology is wide and diverse.
The internet has changed the world over the past 25 years, and similarly distributed ledger technology could be present in most aspects of our lives within two decades without us even realizing it. This new index aims to capitalize on this trend by providing targeted exposure to a basket of companies that support blockchain infrastructure. They are divided into two categories, “Blockchain Enabler” and “Blockchain Promoter”.
- Blockchain Enablers are companies that make up the ecosystem and develop components related to blockchain, hardware and software infrastructure, and cryptocurrency mining.
- Blockchain Promoters are companies that provide services and / or applications related to blockchains and cryptocurrencies (consulting, software, financial services). They are also those who exploit the blockchain to increase their net income thanks to an improvement in their sales or their productivity, for example (in logistics, agri-food, health, etc.).
A limit weighting is applied to companies classified as Facilitators. WisdomTree believes that the rewards paid to miners will decrease over time for several reasons, including that of the evolution towards energy-efficient models, such as ‘Proof of Stake’ or due to protocol configurations such as ‘halving’. Therefore, an overweight is applied to companies classified as Promoters due to their role as major players in the blockchain industry.
“WBLK combines our expertise in indexing with our in-depth knowledge of digital asset and blockchain ecosystems. It offers investors pure exposure to the disruptive technology megatrend, “added Alexis Marinof, Head of Europe at WisdomTree.” This ETF is a natural evolution of our award-winning thematic ETF platform and has strong synergies with our asset-invested ETP platform. Blockchain is a transformative technology with the potential to revolutionize certain industries and facilitate the creation of new business models. The potential applications of this technology are limitless and we expect to see new use cases for blockchain in the coming decades. “
WBLK is the eighth ETF in WisdomTree’s thematic stock lineup which has $ 1.1 billion in assets under management. It is the third launched in 2022 with WisdomTree Recycling Decarbonisation UCITS ETF (WRCY) and WisdomTree New Economy Real Estate UCITS ETF (WTRE).
WBLK is registered for sale in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Spain, Sweden and the United Kingdom.