While WisdomTree is expanding its investment options with Bitcoin, the asset manager has also decided to exit five of its ETFs.
wisdom treeOne of the major players in the financial industry is considering adding Bitcoin (BTC) as part of its commodity exchange-traded fund (ETF), providing its clients with exposure to the crypto market without directly investing in the asset. Does.
According to a recent news document Released on Tuesday, the company proposed to allocate approximately 5% of the WisdomTree Enhanced Commodity Strategy Fund (GCC) to track crypto assets while maintaining indirect exposure to crypto assets.
WisdomTree to diversify its portfolio with Bitcoin
The GCC, launched in December 2020, initially focused exclusively on four commodity sectors including energy, agriculture, industrial metals and precious metals, but can now include B T c,
“The Fund may also invest up to 5% of its net assets in Bitcoin futures contracts. The fund will not invest directly in Bitcoin.”
However, according to one report From Trustnodes, the United States-based company with up to $94 billion in assets under management has already included Bitcoin as part of its GCC portfolio.
The report revealed that the fund currently holds approximately $4 million in BTC, making it a unique mix of the digital currency as well as traditional commodities like cattle and copper. Overall, the ETF claims approximately $200 million in assets.
In a similar move, the asset manager has also added Bitcoin to another ETF called Managed Futures Strategy Fund (WTMF). WTMF, which previously invested in equities, commodities and currencies, has allocated 5% of its net assets to Bitcoin futures contracts, currently holding around $4 million worth of crypto assets.
“The Enhanced Commodity Strategy Fund (“GCC”) and the Managed Futures Strategy Fund (“WTMF”) each invest up to 5% of their net assets in Bitcoin futures contracts. GCC and WTMF are cash-only, traded on the Chicago Mercantile Exchange. Settlers invest in Bitcoin futures on a futures exchange registered with the Commodity Futures Trading Commission,” the company said.
Asset managers embrace Bitcoin investment options
The move is in line with a broader trend of asset managers diversifying their investment options by including BTC in their portfolios. Companies like BlackRock and Morgan Stanley have also recognized the potential benefits of adding Bitcoin to their balance sheets, with some opting for a 1% allocation.
Unlike WisdomTree, which decided to allocate 5% to Bitcoin, BlackRock and Morgan Stanley opted for a 1% allocation. The company’s strategy includes leveraging cash-settled futures from the Chicago Mercantile Exchange, a futures exchange registered with the Commodity Futures Trading Commission.
Similarly, Morgan Stanley and BlackRock are using GBTC and cash futures respectively, showing growing interest in integrating Bitcoin into their investment portfolios.
WisdomTree to end five ETFs
Meanwhile, while WisdomTree is expanding its investment options with Bitcoin, the asset manager has also decided to liquidate five of its ETFs.
In September, the company announced it would close WisdomTree Chinese Yuan Strategy Fund, WisdomTree India Ex-State-Owned Enterprises Fund, WisdomTree US Growth & Momentum Fund, WisdomTree Germany Hedged Equity Fund, and WisdomTree Growth Leaders Fund.
The ETFs ceased trading last week, with shareholders who failed to sell their assets during the specified timeframe having their assets automatically redeemed for cash based on each ETF’s net asset value.
Chimamanda is a crypto enthusiast and experienced writer who focuses on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed her interest in emerging economies. She combines her passion for blockchain technology with her love for travel and food, bringing a new and fascinating perspective to her work.
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