WisdomTree Announces Nine New Blockchain-Enabled Funds are Effective with the SEC
WisdomTree has announced the effectiveness of nine new digital funds with the SEC ahead of the launch of its blockchain-native wallet, WisdomTree Prime™, targeting Q1 2023. The new funds include a diverse range of investments, such as the WisdomTree Short-Duration Income Digital Fund and the WisdomTree 500 Digital Fund. This move reflects WisdomTree's commitment to integrating traditional assets into the digital finance ecosystem. The firm, which oversees approximately $81.3 billion in assets, aims to enhance liquidity and transparency for investors through blockchain technology.
- Launch of nine new digital funds, enhancing product diversity.
- Effective registration of funds with the SEC, indicating regulatory compliance.
- WisdomTree Prime™ mobile app set to bridge traditional and digital finance.
- WisdomTree has approximately $81.3 billion in assets under management, reflecting strong market position.
- Dependence on the successful implementation of blockchain technology, which is relatively new and untested.
- Potential risks related to cybersecurity as it moves financial assets onto blockchain infrastructure.
Ten total digital funds now effective ahead of planned public launch of blockchain-native wallet WisdomTree Prime™
NEW YORK, Dec. 14, 2022 (GLOBE NEWSWIRE) -- WisdomTree, Inc. (NYSE: WT), a global financial innovator, today announced that nine new digital funds1 have become effective with the U.S. Securities and Exchange Commission (SEC), leading up to the planned national public launch of the WisdomTree Prime mobile application, targeted for the first quarter of 2023.
The nine new digital funds reflect a variety of different exposures and each digital fund will invest in traditional assets, including the WisdomTree Short-Duration Income Digital Fund (WTSIX) that was developed leveraging WisdomTree’s model portfolio capabilities, and the WisdomTree 500 Digital Fund (SPXUX) – the firm’s first digital fund seeking to track performance in the U.S. equity market. The WisdomTree Floating Rate Treasury Digital Fund (FLTTX) is also notable as WisdomTree continues to serve as a leader in providing exposure to floating rate treasuries, with the WisdomTree Floating Rate Treasury Fund (USFR) bringing in over
- WisdomTree 3-7 Year Treasury Digital Fund (WTTSX)
- WisdomTree 7-10 Year Treasury Digital Fund (WTSTX)
- WisdomTree Long Term Treasury Digital Fund (WTLGX)
- WisdomTree Floating Rate Treasury Digital Fund (FLTTX)
- WisdomTree TIPS Digital Fund (TIPSX)
- WisdomTree 500 Digital Fund (SPXUX)
- WisdomTree Technology and Innovation 100 Digital Fund (TECHX)
- WisdomTree Short-Duration Income Digital Fund (WTSIX)
- WisdomTree S&P 500 Twitter Sentiment Digital Fund (TWTRX)
“These nine new digital funds exhibit the type of curated experience we expect to be able to provide to WisdomTree Prime users, all bringing mainstream assets into the evolving digital ecosystem,” said Will Peck, WisdomTree Head of Digital Assets. “We believe that blockchain-enabled finance has the potential to improve the investor experience through enhanced liquidity, transparency and standardization, which we aim to achieve over time, and these nine digital funds are setting the foundation as we seek to bridge the gap between traditional finance and digital finance today.”
This announcement comes after the SEC declared effective WisdomTree’s first digital fund, the WisdomTree Short-Term Treasury Digital Fund (WTSYX), earlier this year, with the fund expected to launch in the near future. Access to WisdomTree’s digital funds is anticipated to be through the WisdomTree Prime mobile application, with transactions facilitated by WisdomTree Securities, Inc.2 The waitlist for WisdomTree Prime is open.
“We expect all financial assets to eventually move onto blockchain infrastructure, and this is a significant step in that direction as we bring mainstream exposures like fixed income, equities and commodities into the digital world through blockchain-enabled funds and tokenized assets,” said Jarrett Lilien, WisdomTree President and COO. “Our vision is fast becoming a reality and these are additional bricks in the foundation that will allow us to be a leader in the coming evolution in financial services, laying claim to the deepest exposures in the digital wrapper.”
For more information on the upcoming launch of WisdomTree Prime™, please visit: https://www.wisdomtreeprime.com/.
About WisdomTree
WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models and solutions. We empower investors to shape their future and support financial professionals to better serve their clients and grow their businesses. WisdomTree is leveraging the latest financial infrastructure to create products that provide access, transparency and an enhanced user experience. Building on our heritage of innovation, we are also developing next-generation digital products and structures, including digital funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime™.
WisdomTree currently has approximately
For more information about WisdomTree and WisdomTree Prime, visit: https://www.wisdomtree.com.
Please visit us on Twitter at @WisdomTreeNews.
WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.
Carefully consider the investment objectives, risks, charges, and expenses of the Digital Funds before investing. To obtain a prospectus containing this and other important information, please visit https://www.wisdomtree.com/investments. Read the prospectus carefully before investing.
WisdomTree Digital Funds – Important Information
Each WisdomTree Digital Fund (each, a “Digital Fund”) invests at least
A blockchain is an open, distributed ledger that digitally records transactions in a verifiable and immutable (i.e., permanent) way using cryptography. A distributed ledger is a database in which data is stored in a decentralized manner. Cryptography is a method of storing and transmitting data in a particular form so that only those for whom it is intended can read and process it. A blockchain stores transaction data in “blocks” that are linked together to form a “chain”, and hence the name blockchain.
There are risks associated with investing, including possible loss of principal. Because each Digital Fund is new, it has no performance history. Blockchain technology is a relatively new and untested technology, with little regulation. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Potential risks also include vulnerability to theft, or inaccessibility, and future regulatory developments could affect its viability. For the Digital Funds investing in U.S. Treasury obligations, such obligations may provide relatively lower returns than those of other securities. Changes to the financial condition or credit rating of the U.S. government may cause the value to decline. Fixed income securities are subject interest rate, credit, inflation, and reinvestment risks. As interest rates rise, the value of fixed-income securities fall. For the Digital Funds investing in U.S. equity securities, the trading prices of U.S. equity securities fluctuate in response to a variety of factors, such as economic, financial or political events that impact the entire market, market segments, or specific issuers. The types of U.S. equity securities in which an applicable Digital Fund may provider relatively lower returns than those of other securities.
Cybersecurity attacks affecting a Digital Fund’s third-party service providers, the mobile phone application used to transact in Digital Fund shares, blockchain network, or the issuers of securities in which the Digital Fund invests may subject the Digital Fund to many of the same risks associated with direct cybersecurity breaches.
WisdomTree Digital Funds are distributed by Foreside Fund Services, LLC. Foreside is not affiliated with WisdomTree nor any entity mentioned in the press release.
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about WisdomTree’s ability to successfully implement its strategy relating to digital assets and blockchain-based financial services, including WisdomTree Prime™, and achieve its objectives. These forward-looking statements are based on WisdomTree’s management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside WisdomTree’s management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements included in this release speak only as of the date of this release. WisdomTree does not undertake any obligation to update its forward-looking statements to reflect events or circumstances after the date of this release except as may be required by the federal securities laws.
Contact Information
Media Relations
WisdomTree, Inc.
Jessica Zaloom
+1.917.267.3735
jzaloom@wisdomtree.com / wisdomtree@fullyvested.com
Investor Relations
WisdomTree, Inc.
Jeremy Campbell
+1.646.522.2602
Jeremy.Campbell@wisdomtree.com
1 Ownership of each digital fund’s shares will also be recorded - or digitized - on the Stellar or Ethereum blockchains as a secondary record of share ownership, with official ownership records maintained by the digital funds’ transfer agent.
2 Each digital fund is expected to be available for purchases and sales only via the WisdomTree Prime mobile application as facilitated by WisdomTree Securities, Inc., an affiliated broker. Brokerage commissions are expected to apply on all purchase and sell orders of digital fund shares. WisdomTree Securities, Inc. is not involved in the recording of a digital fund’s shares on a blockchain or related recordkeeping.
FAQ
What digital funds did WisdomTree announce on December 14, 2022?
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