An experienced writer with practical experience in the fintech industry. When not writing, he spends his time reading, researching or teaching.
The company also announced stock splits between two of its cryptocurrency indices: the WisdomTree US Total Dividend Fund (DTD) and the WisdomTree U.S LargeCap Dividend Fund (DLN).
US asset manager WisdomTree has announced two key operational changes that will benefit investors. On Wednesday, WisdomTree amended its ETF filing from March. The company announced the US Bank National Association as the custodian of its BTC trust. Recall that in October, the US bank began offering custody services for institutional investors.
There are suggestions that the change may be the attempt of WisdomTree to rest the clock on its Bitcoin ETF application. It remains to be seen whether this is the case or not.
WisdomTree Forward Share Splits Will Be Beneficial for Investors
Again on Thursday, the company announced stock splits between two of its cryptocurrency indices: the WisdomTree US Total Dividend Fund (DTD) and the WisdomTree US LargeCap Dividend Fund (DLN).
While this will not affect the value of shareholder investments, the number of outstanding shares will increase. Likewise, the price per share will decrease.
According to the announcement, all shareholders by the time the market closes on December 20, 2021, will enjoy the forward share split. This will become payable by the close of the market on December 22, 2021. Subsequently, the shares will trade on the market at a new price.
The price per share for both products as of December 8, 2021, is between $125 and $130 with a split ratio of 2:1. The team believes that the operational change will benefit investors.
Speaking on the development, Anita Rausch, Head of Capital Markets said that “as the share prices of DTD and DLN have increased since their inception in 2006, we believe that splitting the funds price’ will result in a tighter bid.” In addition, the lower price point will mean lower minimum investments. Also, it will make it easier to rebalance ETF portfolios.
With about $76 billion in assets under management globally, WisdomTree is one of the biggest ETF and ETP assets managers. Faced with regulatory setbacks in the United States, the company has launched investment products in Europe. This is in addition to the cryptocurrency indices it launched in The United States and Europe.
Now that regulators have given an okay for crypto-futures-related products, it remains to be seen if the company will also move in that direction.