WisdomTree Grows a Stablecoin Today to Nurture a Crypto ETF Tomorrow

Will a crypto ETF follow?An exchange-traded fund is a basket of securities that are bought or sold through a brokerage firm on a stock exchange.

WisdomTree specializes in ETFs and is the seventh-largest ETF provider in the U.S. It has been a leader in bringing ETF products to market, according to Sykes, who covers the firm as well as other asset managers - particularly its innovative Japan Hedged Equity Fund ETF and Europe Hedged Equity Fund.

The firm itself has said a stablecoin is just a natural extension of its ETF business.

The creation-redemption mechanism is the same and ARs, as defined by Libra, operate like authorised participants in the ETF market.

WisdomTree has acknowledged that the structure of stablecoins and ETFs are similar, but product users would differ.

The SEC hurdleGetting regulatory approval for a stablecoin or a crypto ETF is no easy matter.

In the U.S., the SEC continues to place obstacles before the Libra stablecoin, and it hasn't warmly welcomed crypto ETF applicants, either.

Only this past week, Bitwise Asset Management requested the withdrawal of its SEC application for a Bitcoin ETF, "The second major ETF withdrawal in recent months following similar actions by VanEck," as Cointelegraph reported.

It's not hopelessHowever, recent misfortunes do not mean that it's impossible to get a crypto ETF approved.

The basic idea seems to be that an ETF can be more efficiently managed on a blockchain platform, bringing ETFs to a broader range of investors and enhancing the investor user experience, the firm said.