What You Need to Know

• WisdomTree has launched the WisdomTree Private Credit and Alternative Income Digital Fund (CRDT), tracking a selection of 35 publicly traded funds.
• The fund sets a low entry point of $25 with a redemption period of just two days.
• This initiative aligns with a broader trend where asset managers are venturing into tokenizing traditional investments, following the lead of firms like BlackRock and Fidelity.

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WisdomTree has introduced a tokenized fund that emphasizes private credit, named WisdomTree Private Credit and Alternative Income Digital Fund (CRDT). This fund is designed to monitor a diverse array of 35 publicly traded closed-end funds, business development corporations, and real estate investment trusts. Bloomberg reports.

The fund’s accessibility comes with a minimal investment of just $25 and a two-day redemption period. It’s significant to note that WisdomTree also launched an ETF for the same benchmarks back in 2021, known as the WisdomTree Private Credit and Alternative Income Fund.

The private credit sector has significantly grown in popularity as investors pursue yield-oriented investment opportunities.

“It’s really just about bringing the asset class to a whole universe of different investors,” said Will Peck, head of digital assets at WisdomTree.

The company has developed various tokenized investment products to date, including options for money market funds, fixed-income securities, and equities.

This new offering adds to an existing trend among leading Wall Street asset managers. BlackRock is currently managing a $2 billion money market fund, while Fidelity’s tokenized money market fund also made its debut on Ethereum.

WisdomTree, along with others like BlackRock, demonstrates that traditional finance is beginning to embrace the tokenization of real-world assets, even if the volume remains modest compared to the trillions lost in ETFs and mutual funds.