Global asset manager WisdomTree has unveiled a novel digital asset fund that integrates a traditional options strategy into the blockchain, highlighting the increasing overlap between conventional asset management and blockchain-based financial systems. The WisdomTree Equity Premium Income Digital Fund, known by the token ticker EPXC and the fund ticker WTPIX, aims to mirror the price and yield performance of the Volos US Large Cap Target 2.5% PutWrite Index. This benchmark employs a systematic "put-writing" strategy, where the index sells cash-secured put options to generate income. Instead of writing options directly on the S&P 500, it uses contracts tied to the SPDR S&P 500 ETF Trust (SPY), effectively earning premiums by acting as the option seller.
For those wary of market volatility or potential downturns, put-writing offers a reliable stream of premium income and provides a modest cushion in stable or slightly declining markets. EPXC is accessible to both institutional and retail investors. Thanks to its tokenized nature, it is also available to crypto-native users, who can take advantage of blockchain's faster settlement processes and flexible transferability compared to traditional fund structures.
Will Peck, WisdomTree’s head of digital assets, stated that the launch aims to provide investors with more options for executing their investment strategies on the blockchain, marking another step in the firm's ongoing expansion into tokenized assets.
WisdomTree has been a pioneer in the tokenization space as the wealth management industry gradually catches up. Currently, it operates 15 tokenized funds across various blockchains, including Ethereum, Avalanche, and Base. Its Government Money Market Digital Fund, a tokenized variant of a traditional government money market fund investing in short-term US government securities, stands as the company's most active tokenized product, boasting over $730 million in assets, according to industry data.
Previously, WisdomTree introduced a tokenized private credit fund in September, offering investors blockchain-based access to privately originated credit, which quickly attracted significant inflows following its launch. The financial and wealth management sectors have been slow to adapt, with major institutions like Goldman Sachs and BNY Mellon only recently introducing tokenized money market products. Some industry observers view this trend as a possible reaction to the swift rise of stablecoins, which have become de facto cash instruments across significant portions of the digital asset landscape.