WisdomTree Launches New Tokenized Fund Focusing on Private Credit
WisdomTree has introduced a new tokenized fund aimed at private credit.
The fund, named the WisdomTree Private Credit and Alternative Income Digital Fund (CRDT), tracks a selection of 35 publicly traded closed-end funds, business development companies, and real estate investment trusts, as reported by Bloomberg.
With a minimum investment requirement of just $25, the fund also provides a two-day redemption option. Notably, WisdomTree had previously launched an ETF in 2021 that tracks the same benchmark, called the WisdomTree Private Credit and Alternative Income Fund.
Private credit, which refers to lending that occurs outside traditional banking institutions, has seen significant growth in recent years as investors seek yield-oriented investment opportunities.
“It’s really just about bringing the asset class to a whole universe of different investors,” stated Will Peck, head of digital assets at WisdomTree.
Thus far, the firm has rolled out a range of tokenized investment products, including those that provide exposure to money market funds, fixed income securities, and equities.
This new fund aligns with an increasing trend among major asset managers on Wall Street. For instance, BlackRock manages a $2 billion money market fund, and Fidelity has recently introduced its tokenized money market fund on Ethereum.
WisdomTree is part of a larger shift in the industry. The tokenized $2 billion money market fund by BlackRock, along with initiatives from Fidelity and VanEck, indicates that traditional finance is seriously considering the tokenization of real-world assets, even though it remains small in comparison to the trillions attributed to ETFs and mutual funds.
