Exchange-traded funds (ETFs) have become something of a white whale when it comes to the US crypto-based financial industry. No one has devised a way to create one while complying with the relevant regulators of the US markets. However, one startup seems to be trying again, with a $17 million funding round secured and marked to create a proper ETF solution for the US blockchain industry.
Pushing For ETF By Way of Securrency
WisdomTree, a heavyweight in the ETF industry, has recently pushed out a press release. Within it, it shows that the company has invested in one of the more prolific crypto startups: Securrency Inc. Securrency serves as one of the best blockchain builders within the US industry, putting itself on institutional-grade ability.
WisdomTree serves many roles, predominantly backing exchange-traded products (ETPs) and ETFs and serving as an asset manager. The firm is making plans to capitalize on blockchain technology, using it within the ETF market. With the help of Securrency, WisdomTree is making plans to boost ETF availability with the use of blockchain technology.
$17.65 Million Investment Round
Securrency gained a whopping $17.65 million in total investments. One of the largest investors within this funding round is the Abu Dhabi Investment Office (ADIO), Monex Group, along with WisdomTree. Other significant companies took part in the venture as well.
For two long years, various groups have tried to create an ETF by way of blockchain technology, with big names like Bitwise and VanEck/SolidX being the most prominent. However, the conventional method to allow mainstream participants to gain exposure to various assets has never won the regulatory green light in the US for blockchain integration.
Finding Many Crypto Ideas Wanting
All the while, WisdomTree has considered blockchain technology as a critical opportunity to enhance the world of ETF trading and bring in a more extensive user base. The company plans on making use of the expertise in the blockchain industry that Securrency provides in order to help with identity and compliance. An important fact to know about the above statement is WisdomTree made sure to stipulate that it will do so within regulatory boundaries.
Jonathan Steinberg, the CEO and founder of WisdomTree, expressed his opinions and thoughts about the matter in the press release. He explained that the choice to back Securrency had been a result of reviewing blockchain technology for multiple years, as well as investigating its associated landscape. During this review, Steinberg states that Wisdomtree has found poor examples of blockchain technology. Either by way of unnecessary applications of it or by the compliance factor being left wanting. Even so, Steinberg believes that blockchain technology will be a great boon for investors, should it be used properly.
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