With 3 new crypto ETPs to launch in Europe, can the US afford to lag behind

Over the past week, digital asset investment products witnessed the biggest inflows so far this year at $193 million. Interestingly, Europe saw the majority of the streamin this case, about 76% of total inflows to $147 million.

Diversify my roots

WisdomTree, a New York-based exchange-traded fund (ETF) asset management company, announcement the launch of three new crypto ETPs this week. It would track the performance of Solana (SOL), Cardano (ADA), and Polkadot (DOT).

New ETPs dubbed WisdomTree Solana (SOLW), WisdomTree Cardano (ADAW), and WisdomTree Polkadot (DOTW) would give investors exposure to the prices of the underlying crypto assets. In this context, SOLW, ADAW and DOTW had a total expense ratio of 0.95% or had an expense ratio of 95 basis points.

Additionally, pan-European exchange Euronext is expected to register crypto ETPs in Amsterdam and Paris on April 7, the announcement Noted.

The company also added that investors can access the three digital assets through its diversified crypto ETP basket – WisdomTree Crypto Market (BLOC) and WisdomTree Crypto Altcoins (WALT) and are available for sale in Austria, Belgium, Denmark, Finland, France. , Germany, Italy, Ireland, Luxembourg, Netherlands, Norway, Poland, Spain, Sweden and Switzerland.

Here comes the fee war?

According to Bloomberg senior ETF analyst Eric Balchunas, the bid is set to severely undermine Swiss-based crypto ETP issuer 21Shares, which accused its investors a management fee of 2.5%.

Indeed, other altcoins have garnered attention across the globe. Earlier this month, Bloomberg reported that CoinShares had partnered with crypto exchange FTX to launch a Solana-based ETP.

But where is the result?

Although there is already fierce competition among ETP issuers, the United States does not have a physically backed Bitcoin exchange-traded fund. If this continues, the US could miss the ETF opportunity while others take advantage.

Mary I. Bruner