WisdomTree Launches Cryptocurrency Index
On this episode of the Wiser Roundtable Podcast, Casey Smith is joined by Robert Swarthout to talk about WisdomTree’s new cryptocurrency index.
Listen on Apple Podcasts or watch on YouTube:
SUMMARY:
Market Recap
In the last month, Bitcoin, Ethereum, and SRP have been down. Overall the crypto market cap has been down. In early December, there was about a 20% drop in 24 hours overall in digital currency. Casey and Robert have observed that bear markets in crypto have been longer and Bull markets have been shorter.
Different Kinds of Blockchain
Blockchain is the overall term with subcategories. Proof of work represents a lot of computer power used to do math. Bitcoin was the first and Ethereum is another type. Proof of stake means that you literally own x number of the digital asset, and you hold it in a wallet. When we talk about a car title being on the block chain, this would be on an NFT network.
Bitcoin ETF
The market is demanding a Bitcoin ETF but continually gets denied. When it does happen, there will probably be a lot of investors wanting to get in on it. There is a futures ETF, but it’s not exactly the exposure you want.
RWM WisdomTree Cryptocurrency Index
Josh Brown at Ritholtz got together with WisdomTree to create this index. It’s powered by this company called OnRamp. In this platform, you can trade crypto with financial advisors. They span layer one (Bitcoin, Ethereum), layer two (applications), and oracle networks (networks that take data from the outside world into a tradable asset), crypto indexing services, DeFi (finance like things that are not controlled by a company), and the metaverse (buying virtual land).
The Index Continued
It captures approximately 64% of crypto market cap. Right now the weighting is 36% Bitcoin, 20% Ether, and 4% of the selected 11 other crypto assets. Within the 11 other crypto assets there is Tera (layer 1), Uniswap (DeFi), chain link (oracle), Polygon (layer 2), decentral land (layer two), phantom (layer two), the graph (indexing), AAVE (metaverse), and a few others.
Does this belong in client portfolios?
Casey and Robert aren’t sure yet. They are still studying it as fiduciaries. In the meantime, if you want to dabble with it, only put 1% of your total assets in it. It shoots up and shoots down, so it’s not something that advisors can throw into a portfolio yet.
TIMESTAMPS:
0:45 Market Recap
5:48 Different Kinds of Blockchain
11:10 Bitcoin ETF
22:33 The Index Continued
28:56 Does this belong in client portfolios?
LINKS:
Learn more about Casey Smith and connect with him on Twitter.
Learn more about Brad Lyons.
Learn more about Matthews Barnett.
CONNECT:
Twitter, Instagram, Facebook, LinkedIn, and YouTube.
Learn more about the Wiser Wealth Management Roundtable podcast and access previous episodes.
Recent posts
Share This Story, Choose Your Platform!
Wiser Wealth Management, Inc (“Wiser Wealth”) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). As a registered investment adviser, Wiser Wealth and its employees are subject to various rules, filings, and requirements. You can visit the SEC’s website here to obtain further information on our firm or investment adviser’s registration.
Wiser Wealth’s website provides general information regarding our business along with access to additional investment related information, various financial calculators, and external / third party links. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. Wiser Wealth does not endorse or accept responsibility for the content of any third-party website and is not affiliated with any third-party website or social media page. Wiser Wealth does not expressly or implicitly adopt or endorse any of the expressions, opinions or content posted by third party websites or on social media pages. While Wiser Wealth uses reasonable efforts to obtain information from sources it believes to be reliable, we make no representation that the information or opinions contained in our publications are accurate, reliable, or complete.
To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Wiser Wealth or any of its investment professionals. Advice provided by Wiser Wealth is given only within the context of our contractual agreement with the client. Wiser Wealth does not offer legal, accounting or tax advice. Consult your own attorney, accountant, and other professionals for these services.
