When it comes to digital currencies, volatility is the name of the game. Take today for example. Investors are seeing a market correction to cap off an otherwise pretty bullish week. These downturns can come out of nowhere, and they can be a scary thing to witness. As such, investors are constantly seeking out ways in which they can invest in cryptocurrency in the safest way possible. WisdomTree Investments (NASDAQ:WETF) knows this, and today, it launched a tool through which investors can more safely enter into crypto. The WisdomTree crypto index is a big topic of discussion today as it launches in the U.S.
WisdomTree announced this morning the launch of four new indices; one of these, the RWM WisdomTree Crypto Index, is launching in the U.S. The other three will be available in Europe. What exactly does this index entail? And, more importantly, how might one use it themselves?
Here’s everything you need to know.
WisdomTree Crypto Index Allows Investors to Develop Robust Crypto Plans
- The RWM WisdomTree Crypto Index launched today in collaboration with Ritholtz Wealth Management. The two entities also tapped Winklevoss-backed Gemini and crypto asset management software company Onramp for assistance.
- This crypto index is available starting today, with a caveat. The product is only available to licensed financial advisors who use Onramp’s platform for crypto management.
- Using the index, advisors can create a robust plan with investors to invest in a variety of different cryptocurrencies.
- This particular index is one of the most varied trackers available to investors right now. It tracks cryptos from across six different subcategories. These categories include layer-1 and layer-2 platforms, DeFi, indexing, oracles and the metaverse.
- Of course, it is heavily weighted toward Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD). But, it also tracks some of the trending names of the last several months, like Decentraland (CCC:MANA-USD) and Polygon (CCC:MATIC-USD).
- The new WisdomTree offering continues a trend of direct indexing, which is becoming quite popular for retail investors. Through direct indexing, investors can buy the stocks of an index, rather than an exchange-traded fund (ETF). This type of indexing has long existed for institutions, but it is becoming increasingly popular for individual investors.
- Given the fluidity of capital in the crypto industry, coins can come and go in the blink of an eye. Trends also shift much faster in the crypto world as compared to the stock market. As such, Ritholtz and WisdomTree say they plan to be regularly evaluating index exposures and making changes accordingly.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.