The Evolution of Crypto: From Novelty to an Asset Class

Enter the crypto investment universe

The digital asset ecosystem has experienced rapid growth in recent years, driven by technological innovation, the emergence of novel use cases globally, and the continuing integration of digital technologies into more aspects of everyday life. Opportunities in this space currently include exposure to new forms of digital payments, decentralized finance applications and digital collectibles - with others yet to emerge.

In this dynamic environment, benefits can be seen from exposure to established blockchain networks with critical mass - in terms of market capitalization, user base and trading volume – coupled with the potential technical and security maturity that comes from successfully operating for such a sustained period.


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Invest in Crypto with BTCW

The WisdomTree Bitcoin Fund (BTCW) is designed to complement exposure to traditional asset classes, like equities and bonds, with an exposure that may move differently as economic and market conditions change.

Gain Exposure to Bitcoin Futures with GCC and WTMF

Though neither invests directly in bitcoin, GCC and WTMF are among the first U.S. ETFs to offer bitcoin futures exposure. The WisdomTree Enhanced Commodity Strategy Fund (GCC) uses an actively managed approach and may invest up to 10% of its net assets in any combination of shares of one or more exchange-traded products that primarily hold bitcoin and in bitcoin futures. So investors seeking a broad-based commodities strategy can leverage this maturing asset class. By contrast, the WisdomTree Managed Futures Strategy Fund (WTMF) uses a quantitative, rules-based approach. It seeks to deliver positive total returns in rising or falling markets through a range of futures contracts that include commodities, equities, currencies and interest rates and now invests up to 10% of its net assets in any combination of shares of one or more exchange-traded products that primarily hold bitcoin and in bitcoin futures contracts.

WisdomTree Crypto Indexes

As an index provider, WIsdomTree, Inc. creates and maintains various crypto indexes for the Crypto asset class. The indexes are created to track mega cap crypto assets, specific categories based on their use cases, and diversified baskets of crypto assets using different methodologies. Read below to learn more about the indexes published in the U.S.


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Commentaries from Our Thought Leaders

Hard Money Forecasts: Bitcoin and Gold in 2030 and Beyond
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Blake Heimann

Hard Money Forecasts: Bitcoin and Gold in 2030 and Beyond

As inflation lingers and debt climbs, investors are reassessing hard-money assets for their portfolios. In this piece, Blake Heimann discusses how gold and bitcoin could evolve through 2030 and beyond.

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Bitcoin, Gold and the Hard-Money Renaissance: A Practical Playbook for Allocators
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Christopher Gannatti, CFA
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Dovile Silenskyte

Bitcoin, Gold and the Hard-Money Renaissance: A Practical Playbook for Allocators

The real crypto conversation starts not with code, but with the monetary system. Christopher Gannatti, Blake Heimann and Dovile Silenskyte argue that Bitcoin’s value lies in its hard-asset credentials and outline how allocators can thoughtfully incorporate it alongside gold.

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For more daily insights from our thought leaders, visit our blog.

The Next Wave of Innovation: Tokenization and Blockchain-Enabled Finance

Crypto assets, like bitcoin and ether, are linked to their underlying blockchain technology. Tokenization describes the process by which traditional assets and funds can leverage blockchain technology. WisdomTree believes that tokenization can provide enhanced liquidity, transparency and standardization for financial assets, and it will be an important part of financial services going forward. WisdomTree is developing next-generation digital products and structures, including digital funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime®.

For more information on these topics, please visit WisdomTree Prime or WisdomTree’s Digital Funds.

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Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. U.S. investors only: to obtain a prospectus containing this and other important information, please call 866.909.WISE (9473), or click here to view or download a prospectus online. Read the prospectus carefully before you invest. There are risks involved with investing, including the possible loss of principal. Past performance does not guarantee future results.

There are risks associated with investing, including the possible loss of principal. Crypto assets, such as bitcoin and ether, are complex, generally exhibit extreme price volatility and unpredictability, and should be viewed as highly speculative assets. Crypto assets are frequently referred to as crypto “currencies,” but they typically operate without central authority or banks, are not backed by any government or issuing entity (i.e., no right of recourse), have no government or insurance protections, are not legal tender and have limited or no usability as compared to fiat currencies. Federal, state or foreign governments may restrict the use, transfer, exchange and value of crypto assets, and regulation in the U.S. and worldwide is still developing.

Crypto asset exchanges and/or settlement facilities may stop operating, permanently shut down or experience issues due to security breaches, fraud, insolvency, market manipulation, market surveillance, KYC/AML (know your customer / Anti-Money Laundering) procedures, non-compliance with applicable rules and regulations, technical glitches, hackers, malware or other reasons, which could negatively impact the price of any cryptocurrency traded on such exchanges or reliant on a settlement facility or otherwise may prevent access or use of the crypto asset. Crypto assets can experience unique events, such as forks or airdrops, which can impact the value and functionality of the crypto asset. Crypto asset transactions are generally irreversible, which means that a crypto asset may be unrecoverable in instances where: (i) it is sent to an incorrect address, (ii) the incorrect amount is sent, or (iii) transactions are made fraudulently from an account. A crypto asset may decline in popularity, acceptance or use, thereby impairing its price, and the price of a crypto asset may also be impacted by the transactions of a small number of holders of such crypto asset. Crypto assets may be difficult to value and valuations, even for the same crypto asset, may differ significantly by pricing source or otherwise be suspect due to market fragmentation, illiquidity, volatility and the potential for manipulation. Crypto assets generally rely on blockchain technology and blockchain technology is a relatively new and untested technology which operates as a distributed ledger. Blockchain systems could be subject to internet connectivity disruptions, consensus failures or cybersecurity attacks, and the date or time that you initiate a transaction may be different then when it is recorded on the blockchain. Access to a given blockchain requires an individualized key, which, if compromised, could result in loss due to theft, destruction or inaccessibility. In addition, different crypto assets exhibit different characteristics, use cases and risk profiles. Information provided by WisdomTree regarding digital assets, crypto assets or blockchain networks should not be considered or relied upon as investment or other advice, as a recommendation from WisdomTree, including regarding the use or suitability of any particular digital asset, crypto asset, blockchain network or any particular strategy.

WisdomTree is not acting and has not agreed to act in an investment advisory, fiduciary or quasi-fiduciary capacity to any advisor, end client or investor, and has no responsibility in connection therewith, with respect to any digital assets, crypto assets or blockchain networks.

Bitcoin and, accordingly, the WisdomTree Bitcoin Fund, which holds bitcoin, are highly speculative and involve a high degree of risk, including the potential for loss of the entire investment. An investment in the WisdomTree Bitcoin Fund involves significant risks (including the potential for quick, large losses) and may not be suitable for all shareholders. You should carefully consider whether your financial condition permits you to invest in the WisdomTree Bitcoin Fund and you should be willing to accept more risk than may be involved with other exchange traded products or ETFs that do not hold bitcoin.

The WisdomTree Bitcoin Fund is not a fund registered under the Investment Company Act of 1940, as amended (“1940 Act”), and is not subject to regulation under the 1940, unlike most exchange traded products or ETFs. The WisdomTree Bitcoin Fund is also not a commodity pool for purposes of the Commodity Exchange Act of 1936, as amended, and the sponsor is not subject to regulations by the Commodity Futures Trading Commission as a commodity pool operator or commodity trading advisor. The WisdomTree Bitcoin Fund’s shares are neither interests in nor obligations of the sponsor or the trustee or any of their affiliates.

The WisdomTree Bitcoin Fund has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the WisdomTree Bitcoin Fund has filed with the SEC for more complete information about the WisdomTree Bitcoin Fund and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the WisdomTree Bitcoin Fund will arrange to send you the prospectus if you request it by calling toll free at 1-866-909-9473.

You cannot invest directly in an index.

Foreside does not provide digital products or tokenized assets. Foreside Funds Services, LLC, is the Marketing Agent for the WisdomTree Bitcoin Fund (BTCW)

Foreign investing involves currency, political and economic risk. Funds focusing on a single country, sector and/or funds that emphasize investments in smaller companies may experience greater price volatility. Investments in emerging markets, real estate, currency, fixed income and alternative investments include additional risks. Due to the investment strategy of certain Funds, they may make higher capital gain distributions than other ETFs. Please see prospectus for a discussion of risks.

WisdomTree Funds are distributed by Foreside Fund Services, LLC, in the U.S. only.