WisdomTree Crypto ETPs | Q&A
April 2026
Custody & Security
The custodians for the WisdomTree Digital Assets ETPs (Exchange Traded Products) are Swissquote, a Swiss Bank regulated by the Swiss Financial Market Supervisory Authority (FINMA), Coinbase Custody Trust Company LLC, a New York limited purpose trust company which is authorised to provide fiduciary custodial services to institutional customers and BitGo, a US-regulated qualified custodian and one of the largest independent digital asset custodians globally
Swissquote is a highly reputable Swiss Bank regulated by FINMA. As such, it undergoes financial health reviews, policy and procedure reviews, and must maintain capital reserve requirements as defined by the Swiss Regulator. Swissquote has the largest online trading platform in Switzerland, and is also authorised by FINMA as a digital assets custodian. Swissquote was the first online bank in Europe to offer digital assets trading and has the most complete digital assets platform available to retail and institutional customers. They have developed an industry-leading, institutional-grade approach to digital asset security and have a long history of successfully acting as a custodian for traditional financial assets.
Coinbase Custody is an independent, NYDFS-regulated qualified custodian. They developed best-in-class security and operations to address the security, regulatory, and operational challenges unique to the crypto market. Dedicated on-chain addresses are secured by Coinbase’s battle-tested cold storage. Indeed, Coinbase Custody offers clients access to the secure, institutional-grade offline storage solution that has been used by Coinbase’s exchange business since 2012. All digital assets are segregated and held in trust for the benefit of our clients. In addition, Coinbase’s insurance policy is one of the largest crypto insurance facilities in the industry.
BitGo is a US-regulated qualified custodian and one of the longest-standing independent providers of institutional digital asset custody. It is known for pioneering multi-signature wallet technology and delivering an institutional-grade security architecture that reduces single points of failure. BitGo provides segregated custody, robust insurance coverage, and operates under a framework of strict compliance standards. Its track record of safeguarding billions of dollars in digital assets for institutional clients makes it a trusted partner in the evolving digital asset ecosystem.
WisdomTree has appointed multiple custodians to safeguard the digital currency held by WisdomTree Issuer X Limited (the “Issuer” of WisdomTree Digital Assets ETPs) on behalf of investors.
We consider the multi-custodian structure to provide the below added benefits:
- Diversification of assets to mitigate any single point of operational failure.
- Ability to take advantage of any one custodian strength and expertise in a particular digital currency.
- Ability to take advantage of any one custodian’s enhanced operational efficiency due to development within that custodian.
- Ability to utilise new or increased security measures and tools developed by any one custodian.
- Ability to continue to improve cost efficiency of the products, e.g. custody or transaction fees.
Allocations are reviewed, assessed and agreed by WisdomTree on behalf of our clients. The allocation process will be based on multiple factors such as industry landscape, operational efficiency, technology, etc. For more information, please see our Allocation Policy.
The custodians have developed an industry-leading, institutional-grade approaches to digital asset security. They combine institutional-grade hardware, software security, operational policies and procedures, to eliminate single points of failure and protect digital assets against attacks.
Cold Storage: Private keys1 are fully encrypted and kept offline. For any withdrawal / transaction out of the offline wallet2, human intervention is required.
Geographic Distribution of Redundancies: There is device, geographic, environmental and human redundancy allowing constant access. All locations are highly secure.
Robust Approval Process: The custodians use institutional-grade multi-approval technology, which significantly reduces the risk of losing a single approval key or approver and the effect this may have on accessing the digital assets. Multi-approval technology works by an “M-of-N” system, meaning that M approvers out of N known approvers must approve a transaction. The separation of duties for wallet configuration (e.g. setting and approving policies), client communication, transaction initiation, auditing functions is an inherent component of the custodial offering to provide robustness to the approval process.
Furthermore, redemptions can only be initiated to a predefined immutable set of whitelisted addresses.
1 A secret number that allows digital assets to be spent
2 System to store private keys
Legal & Regulation
1. Jersey is upheld as a jurisdiction that offers excellent, contemporary corporate laws.
2. Jersey has a strong regulatory environment. Jersey is also covered by the Organisation for Economic Co-operation and Development (OECD) Convention, please find the relevant announcement on the OECD website at: https://www.oecd.org/en/about/legal.html.
3. Jersey has a world-class professional infrastructure. Our legal advisor in Jersey is Mourant Ozannes who have offices in London, Hong Kong and in Jersey amongst other jurisdictions.
4. Jersey companies are subject to the ultimate supervision of the Jersey courts. The Jersey courts are independent, and impartial. Many of the judges sitting in the Jersey courts are English-trained lawyers. Moreover, the final court of appeal from the Jersey Court of Appeal is the English Privy Council.
5. The proximity and interconnectedness of Jersey to the UK is convenient for various operational reasons, for example, the CREST settlement system framework extends to securities issued in Jersey and we can use a Jersey based Registrar to interact directly with CREST.
6. WisdomTree has a long history of structuring Jersey-domiciled products that provide exposure to physically held assets. As such, products structured in this way have a proven track record (over 10 years) as being a suitable and efficient for investors on a pan European basis.
A prospectus in respect of the Issuer of WisdomTree Digital Assets ETPs, has been approved by the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) (the “SFSA”), as competent authority under Regulation (EU) 2017/1129.
The prospectus permits offers of WisdomTree Digital Assets ETPs to the public and/or an admission to trading of WisdomTree Digital Assets ETPs on a regulated market in Sweden and in the markets to which the prospectus has been passported.
The Issuer has requested the SFSA to notify the approval of the Base Prospectus to Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, Netherlands, Norway, Poland and Spain.
The Issuer is not supervised by the Jersey Financial Services Commission; however, a copy of the Prospectus has been delivered to the Registrar of Companies in Jersey in accordance with Article 5 of the Companies (General Provisions) (Jersey) Order 2002 (the CGPO), and the Registrar of Companies in Jersey has given his consent to its circulation.
Further, the Jersey Financial Services Commission has given its consent under Article 4 of the Control of Borrowing (Jersey) Order 1958 (the COBO) to the issue of securities by the Issuer. The WisdomTree Digital Assets ETPs do not constitute a collective investment fund under the Collective Investment Funds (Jersey) Law 1988 on the basis that they are investment products designed for financially sophisticated investors with specialist knowledge of, and experience in, making such investments and who have an asset base sufficiently substantial as to enable them to sustain any loss that they may suffer as a result of making such investment.
A separate prospectus in respect of WisdomTree Digital Assets ETPs3 has been approved by the UK Financial Conduct Authority (the “FCA”) as competent authority under Regulation (EU) 2017/1129 (the “Prospectus Regulation”), as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.
3 Currently limited to WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW)
The products are permitted to be offered to the public and/or to be admitted to trading on a regulated market in the following countries:
Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, Netherlands, Norway, Poland, Spain, Sweden, Switzerland and the United Kingdom4.
The products are currently tradeable on the Swiss Stock Exchange (SIX), Deutsche Börse Xetra, the London Stock Exchange (LSE)5, Nasdaq Stockholm6, Euronext Paris and Euronext Amsterdam, Borsa Italiana7, or via a broker for those clients with the appropriate market access. For further information, please contact WisdomTree.
These products are available for institutional and professional investors in the following countries:
- Israel
- Some Latin America countries
This list is not exhaustive. If your region is not in the above list, please contact us.
These products are only available to informed and advanced or expert retail investors in certain circumstances, please speak to your advisor or broker for further information. Furthermore, availability can be restricted in some regions.
4 United Kingdom only applies for WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW)
5 At the moment, only WisdomTree Physical Bitcoin ETP (BTCW) and WisdomTree Physical Ethereum ETP (ETHW) are listed on LSE.
6 At the moment, only WisdomTree Physical Solana ETP (SOLW) is listed on Nasdaq Stockholm.
7 At the moment, only WisdomTree Physical Bitcoin ETP (BTCW), WisdomTree Physical Ethereum ETP (ETHW), WisdomTree Physical XRP ETP (XRPW), WisdomTree Physical Solana ETP (SOLW), WisdomTree Physical Stellar Lumens ETP (XLMW), WisdomTree Physical Lido Staked Ether (LIST), WisdomTree Physical Crypto Altcoins (WALT), and WisdomTree Physical CoinDesk 20 ETP (WCRP) are listed on Borsa Italiana.
The Issuer has appointed three highly regarded institutional cryptocurrency custodians, Coinbase Custody, Swissquote and BitGo. Each of the custodians have adopted robust custody controls of the coins received and strictly monitor the transactions within the custody network, adhering to anti-money laundering (AML) regulations.
Coinbase Custody:
As part of their AML programme, Coinbase Custody has built a bespoke transaction monitoring system integrated into their proprietary Coinbase Analytics blockchain monitoring solution. This enables Coinbase to analyse crypto asset transactions on the blockchain. This infrastructure allows Coinbase to quickly adapt to emerging threats in the crypto-economy, build scenarios and typologies around specific transaction types, and gives them flexibility to support new products and services.
SwissQuote:
Swissquote performs compliance checks and forensic blockchain analysis on all crypto transfers using a non-proprietary system to identify and ensure that the crypto assets do not originate from illegal activities.
BitGo:
BitGo applies a multi-layered compliance framework that combines proprietary risk controls with third-party blockchain intelligence providers. Its AML programme includes transaction monitoring, wallet-level risk scoring, and real-time alerts to identify suspicious activity. Policy-based approvals and segregation of duties are built into its custody platform, embedding compliance directly into operations. This structure enables BitGo to manage illicit finance risks while maintaining operational efficiency for institutional clients.
Structure
This is generally opposed to synthetic replication, by which a financial instrument like an ETP or an Exchange Traded Fund (ETF) does not actually hold the underlying asset which it is supposed to represent, but achieves representation by other means, usually through holding derivative instruments.
Alternatively there are offerings structured as a note or structured product, where the issuing entity essentially guarantees the performance. However, this introduces counterparty risk to the product with investors taking solvency risk to the issuing entity.
The total coin entitlement refers to the number of digital assets the ETPs are entitled to.
The coin entitlement per share can be calculated by dividing the total coin entitlement by the number of shares outstanding.
The exact coin entitlement is published daily and can be found on our website.
Since the products are completely physically backed, the primary way we value the shares is in digital asset terms (for example, bitcoin), i.e. the coin entitlement per share. However, in order to provide clients with a cash equivalent valuation, we also publish a per-share indicative USD value (‘NAV’) which is calculated using the relevant price index, for example the CoinDesk Bitcoin Benchmark London Settlement Rate. This is obtained daily simply by multiplying the per-share coin entitlement (available on the website) by the reference price for that day.
WisdomTree use CoinDesk indices for all of its crypto ETPs because they are trusted, transparent, and designed for institutions. CoinDesk aggregates data from leading exchanges and applies strict rules to ensure fair pricing that reflects the true state of the market. As one of the most established names in digital asset benchmarks, CoinDesk provides the credibility and reliability that investors expect when accessing crypto through WisdomTree’s products.
The ETPs use “in-kind” redemption/creation process in the primary market between the Issuer and the APs. This means the APs deliver/take delivery of digital assets for shares based on a per-share coin entitlement which is available daily on the website. At launch of the bitcoin ETP, each share was worth approximately 0.01 bitcoins so in order to create 100 shares, the AP needed to deliver approximately 1 bitcoin to the ETP.
The WisdomTree Digital Asset ETPs do not trade digital assets in the creation/redemption process, thus avoiding the use of cash, as well as avoiding transaction costs from being incurred inside the product as part of the creation/redemption process.
The exact coin entitlement can be found on our website on a daily basis. The coin entitlement per share can be calculated by dividing the Total Coin Entitlement by the Shares Outstanding.
Investors transact in the secondary market, buying or selling shares on an exchange or directly with their broker.
Investors in most WisdomTree crypto ETPs have an option of physical delivery. Please see Physical Crypto Redemption for further detail.
Safekeeping of assets and accessibility are WisdomTree’s primary goal in creating digital asset ETPs. In developing the program, we have gone to great lengths to ensure that the direct holdings are secured using industry leading storage solutions taking in to account the operational and cyber-security considerations, which are of key important to investors entering this asset class. The products offer a simple and cost-efficient way to invest in digital assets with confidence.
The WisdomTree Digital Asset ETPs directly hold the underlying assets in segregated wallets managed through an institutional custody set-up. The custodians we work with are leaders in the field and offer best-in-class storage solutions for digital assets ensuring that we have transparency and control over our holdings in a highly secure, reliable environment. The amount held is monitored and reconciled daily basis between our custodians, the Issuer and the administrator.
Fork not supported by custodian:
In the event that a fork is not supported by the custodian, this will be clearly notified to WisdomTree. There will be no further action required. The existing digital currency will continue to exist with no impact.
Fork supported by custodian:
If in the event a fork occurs and the custodian is able to support the fork, and allocate any forked assets to WisdomTree, the Issuer will designate a record date for the affected WisdomTree ETPs as of the date of the hard fork (the “Record Date”).
The Issuer will closely monitor the impact of the hard fork and assess the options available to it after the hard fork with an aim to enable holders of the affected WisdomTree ETPs as at the Record Date to receive the benefit of the affected WisdomTree ETPs. These options may depend on options made available by related third parties such as Custodians, Exchanges and Authorised Participants.
The Issuer notes that if the fork occurs, it will not impact the security or structure of the affected WisdomTree ETPs and that it can give no guarantee that it will be able to identify a way of providing the benefit of the forked assets to the holders of the affected WisdomTree ETPs as of the Record Date. Any holder of the affected WisdomTree ETPs who acquires affected WisdomTree ETPs after the Record Date will not receive any benefit from the forked asset.
Trading
Investors in the WisdomTree Digital Asset ETPs can buy or sell as little as one share on exchange or directly with their broker over the counter (OTC). The products are currently listing on the SIX, Xetra , LSE8 , Borsa Italiana9, Nasdaq Stockholm10, Euronext Paris and Euronext Amsterdam exchanges.
8 LSE only applies for WisdomTree Physical Bitcoin (BTCW) and WisdomTree Physical Ethereum (ETHW).
9 At the moment, only WisdomTree Physical Bitcoin ETP (BTCW), WisdomTree Physical Ethereum ETP (ETHW), WisdomTree Physical XRP ETP (XRPW), WisdomTree Physical Solana ETP (SOLW), WisdomTree Physical Stellar Lumens ETP (XLMW), WisdomTree Physical Lido Staked Ether (LIST), WisdomTree Physical Crypto Altcoins (WALT), and WisdomTree Physical CoinDesk 20 ETP (WCRP) are listed on Borsa Italiana.
10 Nasdaq Stockholm only applies for WisdomTree Physical Solana (SOLW).
Here is an example for the WisdomTree Physical Bitcoin ETP.
The daily NAV is calculated using per-share coin entitlement and the CoinDesk Bitcoin Benchmark London Settlement Rate.
The CoinDesk Bitcoin Benchmark London Settlement Rate is calculated based on the relevant bitcoin transactions on eligible constituent exchanges between 3:00 p.m. and 4:00 p.m. London time. The price and size of each relevant transaction is recorded and added to a list which is portioned into 12 equally weighted time intervals of 5 minutes each.
This means that any cost associated with sourcing the digital assets, including any market impact, will affect the pricing of a given WisdomTree Digital Assets ETP trade and therefore the efficient max size.
Whilst market conditions vary and must always be considered when trading, the efficient trade size is typically in the 4-5mn USD range but trades in the 10+mn USD can be accommodated (conditions permitting).
All investors purchase shares in the secondary market (usually on exchange) with two-way liquidity provided by market makers throughout the trading day. The liquidity that market makers are able provide is directly linked to the underlying digital assets market as shares in the products can be created or redeemed on a given day in exchange for digital assets.
If we consider a scenario where an investor is looking to sell shares of the WisdomTree Digital Assets ETP, they would do so at the prevailing market price, either on exchange or via their broker, and will end up trading against an Authorised Participant who will in turn redeem the shares with the Issuer in exchange of digital assets. These can then be liquidated to facilitate payment for the shares being sold by the investor.