It seems U.S. markets are perpetually avoided by Bitcoin ETFs (exchange-traded funds). However, there is one startup that seems poised to help bring blockchain tech and ETFs together at last after $17 million was successfully raised.
WisdomTree recently released a press release on January 7 announcing their investment in a new startup known as Securrency Inc. It's currently one of the best blockchain builders in the regulatory and financial spaces.
Wisdom Tree is well-known in the crypto world as an asset manager and backer of both exchange traded-product and ETFs. The company decided to invest in the new venture in order to harness blockchain capabilities for use in the ETF market. Through the use of blockchain technology, WisdomTree wants to work alongside Securrency in order to make ETFs more available.
Securrency was able to bring in investments totaling $17.65. The contributing companies included Money Group, Inc., Abu Dhabi Investment Office, Wisdom Tree, and many more.
No cryptocurrency ETF yet
Laypeople who want to diversify their assets without diving head-first into the crypto world can get their toes wet with ETFs. Several companies such as Bitwise and VanEck have tried to successfully launch crypto ETFs but to no avail. None have received regulatory approval.
Blockchain technology for ETFs
Blockchain technology has the potential to bring the ETF world to more users. Furthermore, WisdomTree sees the investment as a chance to improve ETF and bring it in line with current regulations. Securrency brings expertise to the table in regards to compliance and identity within the blockchain sector.
Jonathan Steinberg, the CEO and founder fo WisdomTree says that blockchain solutions are currently underperforming. In a press release, Steinberg discussed the investment in the startup. The founder mentioned that the decision came after years of reviewing the blockchain landscape and technology.
Steinberg said that the company's review revealed some ways in which the technology was being used ineffectively and ways in which it was falling short of current regulations. He continued on to mention how blockchain technology has the potential to give investors an advantage when applied correctly. Investors, fans, and other crypto companies are anticipating a release in the near future.