This exchange-traded product will give investors easy access to the crypto asset market exchange-traded fund. Additionally, the investment product will trade under the ticker symbol, MEGA, with support from major crypto coins such as ETH or BTC. The ETP can give associate equal weighted allocation to mega crypto coins with a quarterly rebalance.
The MEGA ETP is Europe’s lowest-priced physically-backed crypto basket. According to WisdomTree’s release statement, the ETP will have a total expense ratio of 0.95%. Additionally, the investment product will be available for sale across the European Union (EU). WisdomTree developed the exchange-traded product alongside CF Benchmarks.
WisdomTree’s latest announcement comes after the asset manager unveiled two previous ETP product launches a few weeks ago. In November 2021, the crypto ETPs launched on the Boerse Xetra and SIX, a Swiss exchange. The SIX Swiss Exchange is a leading stock exchange that has widely received a number of crypto ETPs over the years.
The WisdomTree ETPs
ETPs, otherwise known as exchange-traded products, are derivatives securities that can be traded on a national stock exchange. ETPs are based on investment instruments such as currency, share price, commodity, or interest rate. Unlike exchange-traded funds (ETFs), exchange-traded products are 100% backed by the assets they track.
As mentioned before, WisdomTree had previously launched two ETPs. The first ETP to launch was the WisdomTree Crypto Market (BLOC). This crypto product exposes investors to crypto coins that reflect at least 70% of the crypto market cap. Some of the crypto coins investors will have exposure to are Bitcoin Cash(BCH), Cardano(ADA), BTC, and ETH.
Secondly, the asset manager launched the WisdomTree Crypto Altcoin(WALT). WisdomTree designed this ETP for investors who already have exposure to mega-cap coins other than ETH and BTC.
The latest ETP launch by WisdomTree sees the asset manager join a legion of other US-based asset managers that are launching crypto products in Europe. The launch of these crypto investment products in Europe is are happening despite the regulatory setbacks in the US.
More on WisdomTree: Bitcoin EFT Rejection By SEC
WisdomTree is an asset manager and exchange-traded product sponsor. Prior to its latest announcement, WisdomTree had earlier filed for Bitcoin ETF approval by the US Securities and Exchange Commission. The March 2021 application was, however, not approved by the SEC.
Apart from WisdomTree’s latest launch, Bitcoin Capital AG, under FICAS AG’s efficient management, also recently released two ETPs. The launched crypto products included FiCAS Active Ethereum ETP(ETHB) and FiCAS Active Bitcoin ETP(BTCB).
Euronext is a public pan-European stock exchange. The exchange operates listing venues in various cities across Europe, including Paris, Oslo, Milan, Lisbon, Dublin, and Brussels.
On top of offering a foreign exchange trading platform, Euronext offers product ranges inclusive of bonds, derivatives, equities, ETFs, indices, and so much more. Earlier this year, in May, to be precise, Euronext had issuers worth €5.6 trillion in market cap.