The funds are set to become available on WisdomTree Prime mobile application in the first quarter of 2023.
The US Securities and Exchange Commission (SEC), an independent agency of the United States federal government enforcing the law against market manipulation, has approved nine WisdomTree blockchain-enabled funds.
WisdomTree is a New York-based asset management firm as well as the sponsor of exchange-traded funds (ETF) and exchange-traded products (ETP).
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According to the press release shared on December 14th, WisdomTree digital funds “reflect a variety of different exposures” and asset classes, such as floating rate treasuries, equities and commodities.
It is worth noting that these funds do not track cryptocurrencies. However, WisdomTree uses Ethereum and Stellar blockchain technologies to hold records of share ownership.
When talking about the new digital funds, WisdomTree Head of Digital Assets, Will Peck, stated:
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.
The now-approved funds are expected to be rolled out on the WisdomTree Prime mobile application in the first quarter of 2023. The company highlighted that the waitlist for its mobile application is already live.
It is not the first time SEC has approved WisdomTree’s digital funds. The first blockchain-enabled fund, the WisdomTree Short-Term Treasury Digital Fund (WTSYX), was approved a few months ago. The fund aims to “track performance in the US equity market.”
On top of that, WisdomTree President and COO Jarrett Lilien stated:
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.
In its December 14th press release, the firm revealed that it manages around $82 billion worth of assets across its funds in the US and Europe.
