The CEO of WisdomTree, Jonathan Steinberg, revealed at Consensus 2023 that his company is planning to launch one of the first crypto wallets, WisdomTree Prime Wallet, focused on ETFs. he hinted that the development of crypto sheds light on what the future of ETFs and ETPs can be.
ETFs, or Exchange-Traded Funds, are a type of investment fund that is traded on stock exchanges. They are a basket of securities designed to track the performance of a specific market index or benchmark. They can provide investors with a low-cost and diversified way to invest in a particular asset class or market sector.
There are many different types of traditional ETFs, such as those that track broad market indices like the S&P 500, as well as those that focus on specific sectors or themes.
In describing how the wallet will work, he said that the crypto wallet will be used for trading tokenized real-world assets such as gold, and real estate. He believes that investors with illiquid assets will take advantage of the wallet that will allow the P2P trading of tokenized assets. He added that the aim is to transform ETFs just as ETFs changed how mutual funds were operated in the past.
ETFs and mutual funds
ETFs have had a significant impact on the investment industry, offering investors lower fees compared to mutual funds, more flexibility in terms of trading, greater transparency in terms of holdings, and access to a broader range of asset classes and markets. ETFs are designed to track specific indices and benchmarks, offering lower management fees compared to actively managed mutual funds.
They also provide investors with more flexibility in terms of trading, greater transparency in terms of holdings, and access to a broader range of asset classes and markets.
This has allowed investors to build more diversified portfolios that can provide exposure to a broader range of asset classes and markets.
Launching on the Apple store
The CEO noted that with the aid of blockchain technology, investors will have more flexibility to buy treasuries and that is why the wallet is coming soon. But first, it will be launched on the App Store before the end of Q2 2023.
Because such a product, where tokenized securities can be launched, is not readily available or popular in the market, we are taking a bet on it, the CEO said.
Then the advantage of using a smartphone to carry out such transactions is also transformational, and unique as “you can reach virtually the whole world.”
Opposition against WisdomTree
Jonathan went further to tell Consensus that despite its innovative product that will be launching soon, WisdomTree has a challenge it’s facing. Right in the boardroom, one of its shareholders, who is a critic of the product, has recommended three candidates to be part of the board.
However, Jonathan affirmed that the company, which reached the $90 billion mark in terms of the value of assets it manages in March 2023 and operates nine SEC-approved crypto funds, sees the opportunity for the wallet launch as a way of building on its strength.