Investment firm Wisdomtree has launched a swathe of exchange traded products (ETPs) in a sign that the European crypto market is flourishing.
Wisdomtree ETPs linked to Solana (SOL), Cardano (ADA) and Polkadot (DOT) today listed on the Swiss stock exchange SIX and Borse Xetra, with plans to launch on the Euronext exchanges in Paris and Amsterdam later this week.
Crypto ETPs offer customers exposure to digital assets by tracking the price of underlying price of crypto currencies without requiring investors to hold it themselves.
“A key component to our approach is launching strategies which will resonate with institutional investors,” commented Jason Guthrie, the head of digital assets for Wisdomtree Europe.
ETPs are becoming prevalent in Europe where regulators have taken a more welcoming approach to exchange traded investment vehicles than their counterparts in the US. While altcoin linked ETPs are flourishing in Europe the US securities and exchange commission are still resisting calls for a bitcoin spot investment product.
“In Europe, we’ve always been further ahead. The first exchange traded bitcoin product was launched in Sweden in 2015,” commented Diana Biggs, chief strategy officer at the parent company of Valour, an issuer of exchange traded products in Europe.
“We have regulators, institutions, market, and investors who have had a long time to get comfortable with these types of products… I think it’s really surprised everyone that in the US, we still haven’t seen this type of product come out,” she continued.
A welcoming regulatory environment in Europe has allowed firms to experiment with ETPS linked to alt coins.
“While bitcoin and Ethereum grab the headlines, altcoins are now viable options for many institutional investors, providing more options to diversify their crypto holdings just like they would with any other asset class,” commented Alexis Marinof, the head of Europe at Wisdomtree.
Just last week FTX and CoinShares last week announced plans to launch “the first” Solana ETP that returns a portion of staking rewards to investors.