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New York Fund WisdomTree Adds Polygon and Avalanche to Exchange-Traded Products

Polygon (MATIC) and Avalanche (AVAX) have been included to the indexes mirrored by ETPs (exchange-traded products) on baskets of physically hedged cryptocurrencies, WisdomTree Crypto Market (BLOC) and WisdomTree Crypto Altcoins (WALT). The two cryptocurrencies are listed on the Paris and Amsterdam stock exchanges Borse Xetra and Euronext, as well as the Swiss stock market SIX. ETPs are exported to the European Union for sale.

Head of Europe for WisdomTree, Alexis Marinof, said, “Our digital asset baskets are intended to provide investors exposure to the ever-changing cryptocurrency world.” Digital currencies such as MATIC and AVAX may be introduced to the indexes via quarterly rebalancing. Prior to inclusion in our indexes, cryptocurrencies are evaluated by a committee against a variety of criteria, such as adequate liquidity, a realistic use case, and critical mass. Our screening and rebalancing enables investors to successfully allocate some of the biggest and most liquid crypto assets now investable, inside a familiar product structure, without the need to construct and safeguard separate portfolios or voice opinions about specific currencies.

Polygon is an open-source Ethereum sidechain. It was developed to make transactions quicker and less expensive by using the security of the Ethereum blockchain. MATIC, the Polygon token, serves several purposes inside the Polygon ecosystem, including voting and paying gas commissions. Polygon has concentrated its efforts on facilitating the creation of a scalable infrastructure for the Ethereum network and other EVM-compatible blockchains.

Avalanche is a platform for the introduction of decentralized apps and the installation of corporate blockchains inside a unified, interoperable, and highly scalable ecosystem. Avalanche is a decentralized blockchain with smart contract capabilities that aspires to be eco-friendly, inexpensive, and speedy. AVAX is the Avalanche platform’s native token. It is a scarce asset that is used to pay fees, secure the platform via staking, and serve as a unit of account for the numerous subnets built on Avalanche.

BLOC is a market capitalization weighted free float ETP. It offers exposure to a diverse basket of crypto assets, which account for around 65 percent of the market value of cryptocurrencies. This product is targeted for investors seeking wide exposure to liquid and established cryptocurrency market segments. Bitcoin (BTC), Ethereum (ETH), Cardano, Bitcoin Cash, Litecoin, Polkadot, Solana, Polygon, and Avalanche now comprise the ETP’s underlying index. Due to the relatively large market capitalizations of BTC and ETH, the maximum combined weighting of both assets in the ETP is 75%. The maximum weighting limit for each component is 45%, while the minimum allocation per crypto asset is 2.5%. The total expense ratio (TER) of BLOC is 1.45%.

WALT is a free float market capitalization-weighted exchange-traded product that gives exposure to a diverse basket of cryptocurrencies. The ETP offers exposure to major cryptocurrencies, except Bitcoin and Ethereum, and is aimed for investors who currently have exposure to these mega-cap currencies and want to diversify their holdings without altering their current portfolio. The ETP’s underlying index now includes Cardano, Bitcoin Cash, Litecoin, Polkadot, Solana, Polygon, and Avalanche. The maximum weighting limit for each component is 50%, while the minimum allocation per crypto asset is 2.5%. The TER for WALT is 1.45%.

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