WisdomTree Rolls Out New Crypto App in New York Despite Shareholder Concerns Over DeFi Strategy
In March, they received approval from the New York DFS to operate as a limited purpose trust company, underlining regulatory oversight.
WisdomTree’s largest shareholder criticises the company’s focus on crypto, particularly the underperforming launches of their digital wallet and Bitcoin ETF.
WisdomTree, an asset manager headquartered in New York that offers exchange-traded funds (ETFs) including a Spot Bitcoin ETF, has just launched WisdomTree Prime. WisdomTree Prime is an app which will grant users in 41 states access to digital assets like Ethereum and Bitcoin.
WisdomTree’s app will allow users to save, spend and invest digital assets on-chain.
Related: Is Crypto a Scam? Will Retail Investors Return? Analyst Miles Deutscher Weighs In
In March, the New York State Department of Financial Services (DFS) granted WisdomTree approval to function as a limited purpose trust company under New York Banking Law, according to an earlier press release.
The DFS regulates and oversees the digital asset sector in the state of New York. DFS released an updated ‘greenlist’ back in September, reducing the list of approved tokens from 25 to 8.
Apart from BTC and ETH, the list contains stablecoins Gemini Dollar (GUSD), Pax Gold (PAXG), and the PayPal Dollar (PYUSD).
Dogecoin, XRP and Litecoin are some of the tokens that have been removed from the list – without further explanation.
Aussie Investor Increases Pressure on CEO
Earlier this week, the Financial Times reported that WisdomTree’s largest shareholder, Australian Graham Tuckwell, chair of ETFS Capital expressed his displeasure with CEO Jonathan “Jono” Steinberg.
Tuckwell, obviously not a fan of crypto, criticised the CEO for his venture into crypto and DeFi, calling for a proxy vote to oust Steinberg.
According to the FT, Tuckwell criticised WisdomTree for the weak launches of their digital wallet service, WisdomTree Prime, and the Spot Bitcoin ETF – also demanding that WisdomTree release performance data for these initiatives.
The DeFi initiatives have been a massive distraction and utterly unsuccessful in our view.
BTCW, WisdomTree’s Spot Bitcoin ETF was launched with several others earlier this year.
While the funds have raked in a combined US$11.78 billion (AU$17.82 billion) so far, BTCW has managed to gather only US$58.6 million (AU$88.8 million) in assets under management (AUM), as data from Farside shows.
Latest data shows US Spot #Bitcoin ETFs with a total net inflow of $11.78B and a daily net inflow of $12M on 8 May. Bitwise’s BITB was the only ETF with net inflow; Blackrock’s IBIT and Grayscale’s GBTC both saw zero net flow. pic.twitter.com/VeI8JJtaog
— Crypto.com Research & Insights (@cryptocom_rni) May 9, 2024
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The post WisdomTree Rolls Out New Crypto App in New York Despite Shareholder Concerns Over DeFi Strategy appeared first on Crypto News Australia.
Filed under: Bitcoin - @ May 10, 2024 3:17 am