WisdomTree brings options income strategy onchain with new tokenized fund

Global asset manager WisdomTree has launched a new digital asset fund that brings a traditional options strategy onchain, a development that underscores the growing convergence between legacy asset management and blockchain-based financial infrastructure.

The WisdomTree Equity Premium Income Digital Fund, trading under the token ticker EPXC and the fund ticker WTPIX, is designed to track the price and yield performance of the Volos US Large Cap Target 2.5% PutWrite Index

The benchmark models a systematic “put-writing” strategy, in which the index sells cash-secured put options to generate income. Rather than writing options directly on the S&P 500, the strategy uses contracts tied to the SPDR S&P 500 ETF Trust (SPY), effectively earning premiums by acting as the option seller.

Source: WisdomTree PrimeFor investors concerned about volatility or downside risk, put-writing can provide a predictable stream of premium income and a modest buffer in flat or mildly declining markets.

EPXC is available to both institutional and retail investors. Because the fund is tokenized, it can also be accessed by crypto-native users, who benefit from blockchain infrastructure that offers faster settlement and more flexible transferability compared to traditional fund structures.

Will Peck, WisdomTree’s head of digital assets, said the launch is intended to give investors greater choice in executing their investment strategies onchain, marking another step in the firm’s broader push into tokenized assets.

Related: Crypto index ETFs will be the next wave of adoption — WisdomTree exec

WisdomTree emerged early in tokenization as the wealth industry plays catch-up

WisdomTree was among the earliest asset managers to move into tokenization and now operates 15 tokenized funds across several blockchains, including Ethereum, Avalanche and Base.

Its Government Money Market Digital Fund — a tokenized version of a traditional government money market fund that invests in short-term US government securities — is the company’s most active tokenized product, with more than $730 million in assets, according to industry data.

As Cointelegraph previously reported, the asset manager also launched a tokenized private credit fund in September. The new vehicle offers investors blockchain-based access to privately originated credit and has experienced rapid inflows following its launch.

WisdomTree’s tokenization metrics. Source: RWA.xyzThe broader financial and wealth management industries have been slower to adapt, with institutions such as Goldman Sachs and BNY Mellon only recently rolling out tokenized money market products

Some industry participants view the trend as a potential response to the rapid rise of stablecoins, which now serve as de facto cash instruments across large parts of the digital asset ecosystem.

Magazine: Decade after Ethereum ICO: Blockchain forensics end double-spending debate

• #Blockchain
• #Business
• #Asset Management
• #S&P 500
• #Tokenization
• #RWA Tokenization Add reaction