Onramp Invest to provide the Separately Managed Accounts (SMA) platform to Registered Investment Advisors (RIAs); Gemini to serve as the trading platform and custodian
Ritholtz Wealth Management (RWM) and WisdomTree announced the launch of the RWM WisdomTree Crypto Index designed to provide retail investors, via a financial advisor, access and diversified exposure to cryptoassets. The Index has been licensed to Onramp Invest and is available for financial advisors using the Onramp technology platform to manage separate accounts of clients.
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“At Gemini, we are on a mission to empower the individual through crypto—including the advisor community and their clients”
The RWM WisdomTree Crypto Index, as presently constituted, is made up of 36% BTC (Bitcoin), 20% ETH (Ethereum) and 4% each of 11 other cryptoassets that provide exposure to the broader crypto ecosystem, spanning layer-1 networks (e.g., payment systems, smart contract platforms), layer-2 protocols, oracle networks, crypto indexing services, decentralized finance (DeFi), and the metaverse. The constituents are intended to represent thematic investments in diverse segments that advance crypto infrastructure and provide necessary services.
“WisdomTree is an index developer and innovator at our core. Our team is incredibly bullish on digital assets transforming financial services. We’ve hired aggressively to build indexing infrastructure and support for a crypto focused investment strategy,” said Jeremy Schwartz, Global Chief Investment Officer at WisdomTree. “In our view, this direct indexing implementation of the RWM WisdomTree Crypto Index via Onramp Invest and Gemini is the best assembled structure and diversified cryptoasset exposure currently available to U.S. investors and particularly the RIA community.”
The RWM WisdomTree Crypto Index will follow a modified market capitalization weighted approach and allow the weights to fluctuate in line with market movements. As new cryptoassets become eligible for trading, custody and meet the standards of the Index, and the market evolves, the Index Committee will review Index exposures regularly. RWM’s leadership, including Josh Brown, Barry Ritholtz, Michael Batnick and Ben Carlson, are personally invested in the Index, along with several other of the firm’s financial advisors and employees.
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“The moment of mass adoption for digital assets, blockchain, DeFi, metaverse and web3 technology has arrived. We consulted with WisdomTree regarding the creation of the Index to provide our clients with exposure to the asset class,” said Michael Batnick, CFA, Director of Research at Ritholtz Wealth Management. “As wealth managers, we have a responsibility to adapt our portfolios to this burgeoning opportunity. As fiduciaries, we have an obligation to do so in a sensible way while harnessing the benefits of increased diversification. Allowing the investment community to access digital assets by tracking an index strategy is an exciting chance for Ritholtz Wealth to have an even broader impact.”
Onramp Invest, an integration platform that provides access to cryptoassets for RIAs, will supply the SMA architecture, rebalancing technology, and customer support for financial advisors to seamlessly invest in the Index on behalf of their clients.
“Cryptoassets show great promise for financial advisors to add value, to be compensated for it, and to do so in a way that can be in line with their fiduciary responsibilities,” offered Eric Ervin, Chief Investment Officer and Co-Founder at Onramp Invest. “Our goal at Onramp from day one was to make this possible. We’re excited to play a role alongside these brand names facilitating seamless access to the space for their clients.”
Gemini’s unparalleled custody infrastructure and crypto-native exchange will power the creation of the Index. With a proactive approach to regulation and institutional-grade security, Gemini is a best-in-class partner for wealth managers who want to securely and compliantly offer crypto investments to their clients.
“At Gemini, we are on a mission to empower the individual through crypto—including the advisor community and their clients,” said Kristen Mirabella, Director, Business Development at Gemini. “Today’s announcement brings us one step closer to that goal as we dramatically increase access to digital asset strategies among wealth managers.”
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