WisdomTree launches its first bitcoin exchange-traded product

WisdomTree, a U.S. based asset manager with $60 billion in assets, is now offering a physically-backed bitcoin exchange-traded product (ETP). It is listed on the Swiss SIX exchange where it will compete with a similar product by Amun, however WisdomTree will offer a 0.95% expense ratio compared to 2.5% for Amun.

Why it matters:

• Many investors are still uncomfortable directly buying bitcoin, financial products like this offer alternatives for them to gain exposure without having to deal with custody.
• As the market for bitcoin financial products becomes more competitive, providers will start competing on fees. This will drive down costs, making them more attractive to investors.