WisdomTree’s Bitcoin ETF aims for second-half success with financial adviser adoption

WisdomTree, one of the issuers of spot Bitcoin exchange-traded funds (ETFs), is anticipating a surge in the popularity of its WisdomTree Bitcoin Fund (BTCW) in the latter half of the year. This optimism stems from various financial adviser platforms’ expected adoption of BTCW. Despite initially lagging in assets under management (AUM) compared to other Bitcoin ETFs, WisdomTree remains confident that the tides will turn in its favor.

Built for adviser distribution

Will Peck, the Head of Digital Assets at WisdomTree, highlighted that BTCW was strategically designed with adviser distribution in mind. However, the early stages of this ETF’s journey have been marked by challenges due to some financial adviser platforms hesitating to facilitate trading these new products. 

WisdomTree chose not to seed the fund with a substantial amount of capital and did not possess a substantial balance sheet at the outset, distinguishing itself from competitors who took a different approach.

Despite the initial hurdles, Peck is pleased with BTCW’s performance, asserting that it aligns with their expectations. Recent days have seen robust trading activity in BTCW, suggesting a growing appetite among investors for Bitcoin exposure through ETFs.

According to Bloomberg Intelligence data, BTCW currently holds the lowest amount of assets under management among the ten Bitcoin ETFs, with approximately $12.8 million (equivalent to 296 Bitcoin). Franklin Templeton, another prominent asset management firm, holds the second-lowest AUM at $64.5 million.

In contrast, asset management giants BlackRock and Fidelity lead the way in asset gathering, with over $3 billion and $2.7 billion AUM, respectively. Notably, Grayscale, which converted its Grayscale Bitcoin Fund (GBTC) into an ETF and began trading on January 11, experienced a decline of approximately $10 billion in AUM since its ETF debut.

Optimism amid challenges

Despite these challenges and the current AUM rankings, Will Peck maintains a positive outlook for WisdomTree’s BTCW. He believes that the ETF landscape is still in its early stages and has room for growth. The key to WisdomTree’s anticipated success is the expectation that more advisory platforms will gradually permit the trading of Bitcoin ETFs over the next six months, offering WisdomTree a competitive edge over other issuers.

Peck’s optimism is grounded in the notion that financial adviser platforms are increasingly becoming comfortable with Bitcoin as an asset class. As trust and acceptance in the cryptocurrency market continue to grow, he believes it is only a matter of time before Bitcoin ETFs become more widely accessible on platforms.

As WisdomTree continues to build momentum and anticipates increased adoption among financial advisers, the second half of 2024 could prove pivotal for BTCW’s success. With the gradual expansion of Bitcoin ETF availability on advisory platforms, WisdomTree is positioning itself to attract a more significant market share.

While the AUM rankings show a diverse landscape with leaders like BlackRock and Fidelity, it is essential to note that the cryptocurrency market is dynamic and subject to rapid changes. WisdomTree’s BTCW is poised to seize opportunities as the market evolves.