WisdomTree recently launched its latest cryptocurrency Exchange-Traded Product (ETP), named WisdomTree Physical XRP (XRPW). The new ETP is accessible on major European stock exchanges such as Deutsche Börse Xetra, Swiss Stock Exchange SIX, and Euronext in both Paris and Amsterdam. Offering a management fee of 0.50%, it is currently the most affordable ETP in Europe for gaining exposure to XRP.
WisdomTree has expanded its European crypto ETP offerings, making them available for purchase across several countries, including Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, Poland, Netherlands, Norway, Spain, Sweden, and Switzerland. Investors in the United Kingdom can now also access WisdomTree Physical Bitcoin and WisdomTree Physical Ethereum ETPs, expanding options for those interested in major cryptocurrencies.
While WisdomTree’s launch of the Physical XRP ETP offers investors a cost-effective avenue to gain exposure to XRP, the company has faced several challenges recently, and has been slow to engage effectively in crypto markets.
Questions Raised About Wisdom Tree’s Direction
Last month, the U.S. Securities and Exchange Commission (SEC) fined WisdomTree $4 million for “greenwashing”—misleadingly marketing certain funds as adhering to Environmental, Social, and Governance (ESG) criteria. The SEC found that from March 2020 to November 2022, WisdomTree’s ESG-marketed ETFs invested in companies involved in fossil fuels and tobacco, contrary to their stated objectives. This incident raises concerns about the firm’s compliance practices and transparency.
WisdomTree has been embroiled in disputes with its largest shareholder, ETFS Capital. In March 2024, ETFS Capital criticized WisdomTree’s strategic direction and launched a campaign urging shareholders to withhold votes for certain board members, citing concerns over capital allocation and a shift towards decentralized finance initiatives.
Market Performance and Strategic Direction
Despite its position in the ETF market, WisdomTree’s stock performance has been underwhelming. Shareholders have expressed dissatisfaction with the company’s strategic focus, particularly its ventures into digital assets and blockchain technology, which some investors view as distractions from its core business. This strategic ambiguity has led to calls for a comprehensive review of the company’s direction and leadership.
While the introduction of the Physical XRP ETP demonstrates WisdomTree’s commitment to expanding its cryptocurrency offerings, investors should remain cognizant of the company’s recent regulatory fines, internal governance disputes, and strategic uncertainties. These factors could influence the firm’s stability and the performance of its investment products.
