The two companies are seeking to expand the adoption of cryptocurrency investments leveraging the risk control features of structured products.

WisdomTree is partnering with Marex to offer structured products linked to WisdomTree's ETPs with a focus on the crypto space.

The new products will provide clients with exposure to cryptocurrencies without the full downside risk, as the goal of the partnership is to meet the needs of a broader investor base.

The partnership leverages our sophisticated crypto expertise and the strength of our balance sheet - Walter Cegarra, Marex

Walter Cegarra (pictured), head of institutional solutions at Marex Financial Products told SRP: “The partnership leverages our sophisticated crypto expertise and the strength of our balance sheet as reflected by our investment-grade rating. The goal is to provide exposure to crypto for clients who want some access but don't want the full downside risk of investing directly in crypto.”

Through the collaboration, investors will get access to WisdomTree’s suite of ETPs in Europe which includes 10 synthetic and physical ETPs offering exposure to individual coins such as Bitcoin, Ethereum, Solana, Cardano, and Polkadot as well as crypto baskets.

The strategic move by WisdomTree is aimed at expanding their investor base by offering a more risk-controlled crypto exposure product.

Structured notes linked to ETFs are a common sight in the US market where there are almost 12K live products linked to exchange traded products – the top 10 ETFs used by structured notes issued in the US market have over US$25 billion of AuM. In Europe, structured products on ETFs have some visibility in the retail market but are at some distance in terms of issuance and sales with almost 8K products and US$4.6 billion, according to SRP data.

Structured products linked to crypto ETPs give investors a more controlled way to access the crypto market - Dovile Silenskyte, WisdomTree

“Structured products linked to crypto ETPs give investors a more controlled way to access the crypto market,” said Dovile Silenskyte (below right), director, digital assets research, WisdomTree. “Through our partnership with Marex, we’re combining crypto ETP exposure with tailored risk features to provide products that help investors navigate volatility while offering transparency, flexibility, and the potential to earn yield.

“It’s a significant step in making institutional-grade digital asset strategies more accessible and valuable to a broader range of investors,” added Silenskyte.

According to Cegarra, the new products will appeal to investors who want to benefit from the diversification and exposure to crypto can provide to their portfolio allocation but are not comfortable with the high volatility and potential drawdowns of the asset class.

“This reflects the growing market interest and adoption of crypto, with an increasing number of institutional investors looking for ways to gain controlled exposure,” said Cegarra.

“There is potential for these types of structured crypto exposure products to expand beyond just institutional investors into the wealth management space, though the initial focus will be on the institutional and asset manager investor base.”

Marex believes these types of innovative crypto-linked structured products will help drive further mainstream adoption of crypto as an asset class.

“The key point is that ETPs tracking a basket of cryptocurrencies, such as the WisdomTree Physical CoinDesk 20 ETP, provide a way for a broader range of investors to gain crypto exposure in a more risk-controlled manner through a diversified portfolio of cryptocurrencies,” said Cegarra.

The collaboration extends across WisdomTree’s ETP offering with the two companies also developing Marex issued structured products linked to the WisdomTree Europe Defence UCITS ETF which has surpassed US$750m in AuM since its launch on 4 March.

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