SEC approves 9 more WisdomTree ‘blockchain-enabled’ funds

After announcing the approval of nine new digital funds, WisdomTree reiterated that it wants to further integrate blockchain tech to improve the investor experience.

The U.S. Securities and Exchange Commission (SEC) has given the green light to nine more blockchain-enabled funds from $82 billion asset manager WisdomTree.

None of these funds track crypto assets themselves, but the firm does utilize the Ethereum and Stellar blockchains to keep a secondary record of share ownership, thus making them blockchain-enabled or “digital funds” as WidsomTree describes them.

The firm announced the SEC’s approval on Dec. 14, and outlined that the nine digital funds offer exposure to a host of different asset classes such as equities, commodities and floating rate treasuries. The funds are expected to launch via the WisdomTree Prime mobile app in the first quarter of 2023.

“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,” said Will Peck, WisdomTree’s Head of Digital Assets.

The latest SEC approval comes three months after it approved the firm’s first digital fund called the WisdomTree Short-Term Treasury Digital Fund (WTSYX) in September.

In a Sept. 26 blog post, Peck emphasized that WisdomTree is looking at creating a greater investor experience via digital funds and blockchain tech, particularly in relation to trading and transaction settlements.

“To give a few examples […] it’s remarkable that some blockchains can provide near-instant settlement finality on a peer-to-peer basis on a 24/7/365 basis. Blockchains can allow for atomic settlement (where software ensures assets are exchanged in settlement) as opposed to other potentially riskier settlement processes, like delivery vs. payment (DvP),” he wrote.

As of Dec. 14, WisdomTree claims to have roughly $82 billion worth of assets under management across its U.S. and Europe listed funds.

Related: SEC looks to intercept Grayscale Bitcoin ETF review bid

Like Grayscale Investments, the firm has also been pushing to launch an exchange traded fund (ETF) offering exposure to the spot price of Bitcoin (BTC) since early 2021.

However the SEC has rejected WidsomTree’s applications on multiple occasions, citing general concerns over fraud and market manipulation on BTC trading markets.

To date, the SEC is still yet to approve a spot BTC ETF.

The firm however offers various products tracking the altcoin market and earlier this year in March, the firm also launched three crypto exchange-traded products (ETPs) backed by Solana (SOL), Cardano (ADA) and Polkadot (DOT).

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Gate.io pledges $100M to revive crypto and rebuild investor confidence

With investors moving their funds away from exchanges into self-custody, market liquidity concerns are an immediate threat to struggling crypto businesses.

In a move to tone down the negative impacts of a bear market and ecosystem collapses, crypto exchange Gate.io launched an industry liquidity support fund with an initial commitment of $100 million.

With investors moving their funds away from exchanges into self-custody, market liquidy concerns are an immediate threat to struggling crypto businesses. Gate.io’s $100 million commitment aims to support companies looking to restrategize and adapt to changing market conditions.

The liquidity support aims to help crypto businesses maintain their focus on their business while being protected from market uncertainties. The announcement read:

“The $100 million will be allocated to high-quality projects, market makers, high-frequency traders, and other institutional clients and HNW individuals.”

Eligible crypto projects will receive funding up to $10 million, primarily for market-making, i.e., providing liquidity for traders. The company has set no deadline for applicants and hopes to expand the fund based on future market trends. In this regard, Lin Han, Founder and CEO of Gate.io, stated:

“Unforeseen hurdles during the bear market shouldn’t adversely affect users and inhibit innovation. Now is the time to work together on rebuilding, protecting users, and fortifying the market.”

In addition, the Gate SAFU fund, created by Gate.io in 2019, continues to provide a security blanket and insurance fund for user assets.

Related: Blockstream raising funds for mining at 70% lower company valuation

Crypto exchange Binance, too, has taken up the responsibility to help the ecosystem survive uncertain market conditions.

Most recently, Binance CEO Changpeng Zhao revealed plans to allocate $1 billion for an industry recovery fund. Binance’s proposed recovery fund is aimed at providing financial support to promising projects in financial distress.

While Binance is yet to officially announce the fund’s launch, CZ highlighted plans to adopt a relatively “loose” structure by allowing different industry peers to contribute to the fund.

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