Redemption Procedures for Eligible WT Securities: Exchange for Digital Assets
WisdomTree is pleased to announce that it is able to expand its range of physical delivery options to allow investors in eligible Physically-Backed WT Securities (the “Eligible WT Securities”), issued by WisdomTree Issuer X Limited (the “Issuer”), to redeem their investment in exchange for digital assets.
The list of WT Securities eligible for physical redemption:
The list of eligible WT Securities may be updated from time to time by notice issued by the Issuer. Each Eligible WT Security represents a right to receive the relevant coin entitlement in the relevant digital assets (less any applicable deductions).
Investors can redeem Eligible WT Securities directly, and request a physical redemption, with delivery of the relevant digital assets to a custodian of the Issuer or to an entity affiliated with the Issuer’s custodian (such as a local branch or subsidiary). In respect of German investors, this applies without limitation to Coinbase Germany GmbH. In addition to being a custodian of the Issuer (or an affiliated entity), the custodian must support the relevant coin at the time of delivery and hold a custodial account for the investor.
Redemption instructions for different investor types
Select the investor type that best applies to you:
Step 1: Please take time to read the FAQs, Condition 8 (Optional Redemption) of Schedule 6 (Terms and Conditions of the WT Securities) and Condition 3 (Redemption of Digital Securities) of Annex A (Digital Securities Annex) contained in the Prospectus of WisdomTree Issuer X Limited and the redemption form.
Step 2: Confirm who the Registered Holder is. Given that most individual investors hold their Eligible WT Securities through a brokerage account, very few individual investors will be the registered holder. It is best to speak directly to your broker to discuss how your securities are held. If you believe you are a registered holder, you can contact WisdomTree directly at [email protected] to confirm.
Step 3: VERY IMPORTANT: You will need to provide the relevant customer due diligence/anti-money laundering ("CDD/AML" documentation). We cannot begin the process until we have received the required CDD/AML information and performed the necessary review. For the detailed requirements, please refer to the CDD/AML documentation.
Once we complete the CDD/AML process, you will be able to submit the exchange form.
Step 4: Ask the Registered Holder in CREST to complete the redemption form. Your broker will need to provide certain details including:
The Registered Holder’s CREST account details (Part A of the redemption form). This will allow us to match the broker’s trade in CREST when they redeem the relevant Eligible WT Security;
The name of the registered holder; this will most likely be the name of a broker’s nominee or depositary account (Part B);
Your name as beneficial owner (Part C)
The number of Eligible WT Securities you wish to redeem. You will need to give this information to your broker and/or the Registered Holder (Part D);
You will need to make clear which custodial account with the Issuer’s custodian (or an affiliated entity) you wish to have your digital assets delivered, along with relevant account details and a contact name at that custodian.
The Broker and/or the Registered Holder will need to provide a contact number and sign (Part G).
You can send the redemption form by email or post:
Post: WisdomTree UK Limited 1 King William St London EC4N 7BJ United Kingdom
Step 1: WisdomTree is offering a service whereby Eligible WT Securities can be redeemed directly for digital assets. Your client is requesting the direct redemption of Eligible WT Securities in exchange for digital assets by delivery of the digital assets to a custodian of the Issuer or to an entity affiliated with the Issuer’s custodian (such as a local branch or subsidiary) who at the time of delivery, supports the relevant coin. Please take time to read the FAQs, Condition 8 (Optional Redemption) of Schedule 6 (Terms and Conditions of the WT Securities) and Condition 3 (Redemption of Digital Securities) of Annex A (Digital Securities Annex) contained in the Prospectus of WisdomTree Issuer X Limited and the redemption form.
Step 2: You and your client will need to confirm who the Registered Holder is. Given that most individual investors hold their Eligible WT Securities through a brokerage account, very few individual investors will be the registered holder. Most beneficial owners of exchange traded securities hold those securities in brokerage accounts, and their brokers hold the securities through additional accounts (often called “nominee accounts”). As an issuer, WisdomTree Issuer X Limited can only see the names of these nominee accounts on its register. The registered holder of the Eligible WT Securities may apply for redemption on its own behalf, or as nominee on behalf of the beneficial holder. Additionally, Eligible WT Securities held in settlement systems outside of CREST will need to track the ownership chain through to the ultimate CREST holding. As a result, your client will likely need your help in completing the redemption process.
Step 3: VERY IMPORTANT: Both you and your client will need to provide the relevant customer due diligence/anti-money laundering ("CDD/AML" documentation). We cannot begin the process until we have received the required CDD/AML information and performed the necessary review. For the detailed requirements, please refer to the CDD/AML documentation.
Once we complete the CDD/AML process, we will confirm receipt of the redemption form and commence the redemption.
Step 4: You may need to help your client complete the redemption form and Brokers will generally need to provide the following details:
Your CREST account details. (Part A) Please note that redemption of the Eligible WT Securities will be free of payment, with the securities delivered to the Issuer and matched in CREST but no cash flowing the other way. The Issuer will provide a confirmation of the transfer of digital assets to the relevant custodian account.
Please enter the name of the registered holder (your nominee or depositary account name) (Part B);
Please enter the name of the beneficial owner (Part C);
The number of Eligible WT Securities your client wishes to redeem (Part D);
You will need to make clear which custodial account with the Issuer’s custodian (or an affiliated entity) you wish to have your digital assets delivered, along with relevant account details and a contact name at that custodian (Part E);
Provide contact details for confirmation of redemption and redemption and sign the exchange form (Parts G). It is important the redemption form is signed by the Registered Security Holder.
You or your client can send the redemption form by email or post:
