New crypto index makes debut




A new business partnership has resulted in a new alternative for crypto investors.


Michael Bellusci at Coindesk reports this morning that Ritholtz Wealth Management and WisdomTree Investments have created the RWM WisdomTree Crypto Index, which weights a number of coins and tokens in order to provide broad market exposure.


What’s in the RWM WisdomTree Crypto Index? 36% of the holdings are in Bitcoin, and 20% is in Ethereum, largely consider the front-runner after BTC.


In addition, the RWM WisdomTree Crypto Index also has a 4% stake in 11 other cryptocurrencies, each of which is getting attention in a nuanced technology sector.


Part of the reason this news is important is that American investors, to date, haven’t had a lot of choices in funds with exposure to Bitcoin or other coins.


There is the Grayscale Bitcoin Trust, which trades on the value of Satoshi’s original blockchain asset.


Then, recently, ProShares got approval for the first Bitcoin ETF, so there’s that.


But the RWM WisdomTree Crypto Index is going to offer the broader index-based crypto investment opportunity that many traders are looking for if they want to bet on the general evolution of cryptocurrency, and not just one particular coin.


RWM has indicated there will be no management fee for this index fund.

“Ritholtz’s chief investment officer, Barry Ritholtz, told CoinDesk that clients have become increasingly intrigued by bitcoin and other cryptocurrencies,” Bellusci writes, noting that Ritholtz has around $1.8 billion in assets under management, and WisdomTree currently has about $76.4 billion in assets under management. “Beyond ETFs and mutual funds, he said that ‘this is going to be the next best thing for RIA [registered investment advisor] clients and RIAs who want to get exposure to the space.’ Ritholtz’s leadership, including Ritholtz, Batnick, Josh Brown and Ben Carlson, have invested in the index, along with financial advisors and employees at the firm.”

Traders can consider whether to get in on the ground floor