The CEO of WisdomTree is confident that crypto winter brings “lots of opportunity.” The fund group is looking to expand its regulatory offerings in an effort to gain market share by beta testing its consumer finance app. The firm expects to begin generating revenue from its digital asset initiatives in 2023.
Digital asset-focused investment manager WisdomTree sees opportunities to profit from the crypto winter by expanding the company’s regulatory prowess in a bid to attract additional customers, Blockworks reports. The firm ended the second quarter with $74 billion in assets under management.
“While some companies have struggled with the realities of regulation and risk management, and other companies have lost the trust of their customers and investors completely, for WisdomTree, the timing of this crypto winter is very constructive and brings lots of opportunity,” said CEO Jonathan Steinberg on an earnings call Friday.
Even though some clients have lost confidence in financial firms offering investment in cryptocurrencies, there are those who see the crypto winter as a great opportunity.
“With these bankruptcies and these client losses, I think a lot of people don’t trust their counterparts in the crypto space the same way,” Will Peck, WisdomTree’s head of digital assets, told Blockworks in an email. “WisdomTree has a great brand, reputation and culture of risk management and regulation, and we’re going to be well-served to pick up a lot of customers for both ETPs, indexes and WisdomTree Prime.”
Many of the firm’s clients in the US and Europe view the current market environment as a good entry point to get involved in digital assets, Peck noted.
WisdomTree Prime, a consumer financial app for which the firm first revealed plans in January, is in its initial stages of beta testing. It is designed to allow users to save, spend, and invest in cryptoassets such as Bitcoin and Ether, and in blockchain-enabled funds and tokenized versions of physical assets, such as gold and US Treasurys. There will be “a measured rollout” in the coming months as the firm continues to receive user feedback.
Firm executives said WisdomTree expects to generate revenue from its digital asset initiatives starting in 2023. “The end goal is to deliver financial services to customers faster, cheaper and with better outcomes than exist today,” the CEO said. “Over time we expect all financial assets to eventually move onto the blockchain infrastructure.”
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