What you need to know
- The funds are available only through a new mobile wallet, WisdomTree Prime.
WisdomTree Inc. It announced Wednesday that it will offer 10 new digital funds through its WisdomTry Prime mobile app, which is scheduled to launch in the first quarter of 2023.
The company opened a waiting list for the app, a digital wallet that provides exclusive access to all retail investors in the US to save, invest and spend, and digital funds. Affiliated Broker WisdomTree Securities Inc. It facilitates transactions.
The US Securities and Exchange Commission recently announced that WisdomTree has made nine funds effective – meaning the company has completed all SEC filings for fund registrations – a year after it announced its first digital fund, the WisdomTree Short-Term Treasury Digital Fund (WTSYX). The firm said it expects to launch WTSYX in the near future.
The digital funds invest in traditional assets with different exposures, and are open-ended and registered as traditional mutual funds, Wisdomtree said in a press release and blog post.
A transfer agent maintains a primary record of share ownership in its own books and records but, unlike a traditional mutual fund, maintains a secondary record of shares on the Stellar or Ethereum blockchains.
The nine new digital funds are:
- WisdomTree 3-7 Year Treasury Digital Fund (WTTSX)
- WisdomTree 7-10 Year Treasury Digital Fund (WTSTX)
- WisdomTree Long Term Treasury Digital Fund (WTLGX)
- WisdomTree Floating Rate Treasury Digital Fund (FLTTX)
- WisdomTree TIPS Digital Fund (TIPSX)
- WisdomTree 500 Digital Fund (SPXUX)
- Wisdomtree Technology and Innovation 100 Digital Fund (TECHX)
- WisdomTree Short Term Income Digital Fund (WTSIX)
- WisdomTree S&P 500 Twitter Sentiment Digital Fund (TWTRX)
In line with WTSYX, the first six funds on the list have no management fees, the company said, and Wisdomtree affiliates expect other fees, such as fees to facilitate transactions. No other information was available about the payout and expense ratios for the nine new products, a company representative told ThinkAdvisor in an email.
The firm’s online information about WTSYX fund has a 0% expense ratio and requires a minimum investment of $25, and brokerage commissions are expected to be applied to all fund share purchases and sales. WisdomTree WTSX said it will not invest in any assets based on blockchain technology, such as cryptocurrencies.
“These nine new digital funds demonstrate the curated experience we hope to provide to WisdomTree Prime users, all bringing core assets into the evolving digital ecosystem,” said Will Peck, head of WisdomTree Digital Assets, in the release.