Looks like institutional investors are starting to go after top 10 crypto now, not just Bitcoin and Ethereum.
WisdomTree is a large global investment firm with 70+ ETFs and almost $50 billion under management.
They announced that they will be offering ADA, DOT and SOL products in Europe in form of ETPs. They will offer ADA ETP on Euronext Paris, Euronext Amsterdam, Xtera (German) and SIX (Swiss) exchanges and they are offering products in USD, EUR and SWISS Franc.
Unlike all bunch of previous futures and options offerings from others this is a CUSTODY product. That means that ETPs will actually buy and hold ADA for their investors (instead of just pegging to price or an option). That means anyone can use margins, loans and credit cards to get exposure to ADA as investment. Here is the funny part… it costs 0.95% per year.
You heard that correctly. Now instead of staking your own ADA and getting 4% a year you can give money to investment company that will turn ADA into a security and charge you 0.95% a year (+ trading fees).
Yes, I know this will reduce liquidity and increase the price of ADA. However, I still recommend to all of you to tell anyone who wants to invest in ADA to just buy ADA and stake it with Single Stake Pool Operator. I know many people are unsure about regulation, taxes, technology, security, etc… But if they are willing to buy ADA from an investment company, then it’s just as legal and more profitable to self custody.
And if there are any people out there that just want to buy ADA ETPs anyways. I recommend to at least open a lite wallet and buy a few ADA besides your ETP. Consider it doing your own research for the investment. Just put enough ADA into that lite wallet so you can explore Cardano network and know what you bought into .
WisdomTree Investor Prospectus: