Introducing the RWM Wisdom Tree Encryption Index (SMA)
Customers have been contacting us to ask specific questions about: everything: Investment, market, economy, specific company-almost all the headlines that could cause chaos on the day. We do our best to provide the necessary background to fully understand any of these issues.This is why you will see all our blog posts, podcasts, media appearances and books RWM Team: We are working hard to simplify the complex and confusing investment world.
In the past few years, more and more problems have been related to encryption: first Bitcoin, then blockchain, then Ethereum, other coins, Web3.0, and now Metaverse.
The most asked question: “Should I invest in this?“
Our conservative response: “Feel free to invest a few percent of your liquid assets into any coin or technology that attracts you.Warning: If successful, that’s great, but if not, it shouldn’t have a meaningful impact on your standard of living. “
Frequent and surprising follow-up: “great! Can you do this for us?“
Our answer in the past few years has been “No, we are sorry, but for any RIA, it is too difficult, too expensive and too complicated to manage intelligently; institutional-level technology does not yet exist. “
But starting today, our answer has changed: “certainly!Talk to your advisor, it takes a few minutes to set up an account, you can buy RWM Wisdom Tree Encryption Index In a separately managed account (SMA). This is a modified market capitalization weighted index consisting of 36% Bitcoin, 20% Ethereum, and 4% of each of 11 other assets that provide broad cryptocurrency exposure. We will handle everything else for you.“
Have a Longer and more interesting stories Behind this:
Michael Batnick is the research director RWM. He is looking for interesting ideas on behalf of RWM clients. As encryption problems appeared more and more frequently, Michael delved into the entire encryption complex to see what was available for consultants.
What he learned surprised all of us:
First, there is no simple, cheap RIA-specific diversified encryption solution available.
Second, given that we generally prefer indexation methods over stock or coin selection, we are hindered by the lack of RIA options. There are not many good choices: From the customer’s point of view, the wallet is a non-starter.
Third, we do see the nightmare of DIY. One company manages your wallet, another company is responsible for transactions, and another company is responsible for providing you with regular updates. For busy customers, it is neither easy nor cheap. They both run their own businesses and engage in time-consuming tasks.
“Find a simple, cheap and safe solution” has become the driving force here, and I believe we have done it.Batnik created solutions such as Three key requirements:
- Provide safe, reliable and reliable services for financial advisers and their clients. If this does not happen, the entire project cannot start.
- Simple, not more complicated than opening an RIA account; easy to do, easy to execute purchases (or sales); easy to add more funds to the account.
- Based on the index: meaning that the price is low, the turnover rate is low, and investors do not need to choose coins to complicate matters.
To achieve this goal, we cooperate with three companies with domain expertise:
• wisdom Tree Has been a leader in indexing for decades. We have always admired their leadership and expertise.The company is committed to encryption, and their CEO recently explained why I fully support DeFi.
• Gemini Is our custody infrastructure and crypto-native exchange partner. Winklevoss (the founder of Gemini) has established a first-class exchange that is both safe and compliant for wealth management institutions that want to provide crypto investments to their clients.
• Ramp Provide a comprehensive integrated platform for encrypted assets. They allow all moving parts here to be integrated easily and seamlessly. They are the technical layer that does all this work (we are seed investors in OnRamp, as is Wisdom Tree).
None of the companies we reviewed had expertise in all of these areas. Forming a consortium to complete this work is the best way to achieve something worthwhile. I believe the results validate this method.
For many years, I have been calling Batnick one of our “secret weapons”; he is the chief architect of this project, someone who doesn’t let anything stop it.Between him Blog, Book, with podcast, I think it’s time to stop calling him like that-the secret has come out…
You can also take a look:
RWM Wisdom Tree Index
Smart tickets: creators capture secondary market sales (April 7, 2021)