WisdomTree has announced the expansion of its institutional tokenized funds solution to five more blockchains.

The asset management firm, which initially launched its WisdomTree Connect on Ethereum (ETH), is now looking to increase its presence across the rapidly expanding tokenization market with deployment on four more blockchain networks.

WisdomTree Connect went live in September 2024.

As well as Ethereum, the asset manager’s suite of 13 tokenized funds will now be available on Arbitrum, Avalanche, Base and Optimism.

It’s a milestone that could see WisdomTree increase its assets under management significantly.

Currently, WisdomTree Connect offers access to tokenized money market funds, asset allocation funds, equity index funds and asset allocation funds. The company’s money market fund, the WisdomTree Government Money Market Digital Fund, with ticker symbol WTGXX, allows eligible investors access to a product that provides exposure to short-term government securities.

Meanwhile, the suite of equity index funds, including WisdomTree 500 Digital Fund and WisdomTree Technology & Innovation 100 Digital Fund, allow institutional investors to look for opportunities in funds that track leading stock market indices.

According to Maredith Hannon, head of business development, digital assets at WisdomTree, providing access to several tokenized funds offers greater choice for investors.

Adding support for the new blockchain networks bolsters this outlook, with flexibility key to adoption.

Hannon added that users can access WisdomTree’s tokens directly on the supported blockchains, with the platform also integrated with self-custodial wallets.

The company also supports major third-party wallets.

WisdomTree is seeing notable adoption for its real world assets offering at a time major players such as BlackRock and Fidelity Investments are also quickly expanding across the market. Similar scenarios can be seen for blockchain-based platform like ONDO Finance, MANTRA and Injective.

Ondo Finance taps into WisdomTree’s money market fund to collateralize it’s tokenized asset OUSG. The blockchain platform also invests in BlackRock’s and Franklin Templeton’s tokenized funds.

Shares of Coinbase (COIN), the largest crypto exchange in the US, have faced significant declines during the first quarter (Q1) of the year, primarily due to escalating concerns about the US economy and its impact on digital assets. 

Coinbase And Others Face Increased Volatility

According to Bloomberg, Coinbase’s stock has dropped more than 30% since the beginning of the quarter, marking its worst performance since the collapse of the FTX exchange in late 2022. 

This decline is reflective of a broader trend affecting nearly all major crypto-linked stocks, including companies like Galaxy Digital Holdings (GLXY.TO), Riot Platforms (RIOT), and Core Scientific (CORZ).

Related Reading

The cryptocurrency market itself is experiencing turmoil, with Bitcoin (BTC) falling over 20% from its all-time high and Ethereum (ETH) plummeting more than 45% in value. 

These shifts come amid President Donald Trump’s escalation of a “global trade war,” which has stirred fears about the health of the country’s economy. Economic data has exacerbated these concerns, pushing the S&P 500 Index (GSPC) toward its worst quarter since mid-2022. 

Oppenheimer analyst Owen Lau noted that many within the cryptocurrency community recognize that the current market conditions are not primarily driven by fundamental factors. Instead, Lau emphasized that macroeconomic issues—such as tariffs and the potential trade war—are influencing investor sentiment significantly. 

The looming threat of a recession has reportedly added to the unease, causing higher-risk crypto-linked stocks to be even more volatile than Bitcoin itself. 

Lau explains that investments in companies like Coinbase carry additional risks, including the potential for bankruptcy, allegedly making them particularly susceptible to swift sell-offs.

Cryptocurrency Market Struggles To Rebound

The current state of the cryptocurrency market is a stark contrast to the optimism that prevailed at the start of the year, following Trump’s election. Bitcoin reached a record high of over $109,000 on Inauguration Day. 

Earlier this month, Bitcoin prices fell after Trump announced a strategic reserve for the market’s leading crypto, but did not allocate taxpayer funds to expand it. As of now, Bitcoin trades around $83,000, still above pre-election levels but far from its peak.

Related Reading

While shares of various crypto-related companies surged following the election, Coinbase and crypto miners have since relinquished those gains. Notably, Michael Saylor’s Strategy (MSTR) is among the few stocks in the sector that has managed to remain in positive territory since November 5.

Despite the downturn, the cryptocurrency industry continues to gain influence in Washington and is moving closer to integration with traditional financial systems. However, this growing power has yet to translate into a market rebound. 

Connor Loewen, a cryptocurrency analyst at 3iQ, expressed skepticism about the current state of investor sentiment, stating, “What we saw a couple of months ago, I don’t know how much crazier it can get than that. I think we’re going to have to be looking for new catalysts.”

Featured image from DALL-E, chart from TradingView.com 

Bitcoin’s price action in the past 48 hours has seen it approaching the $80,000 price level again, with risks of breaking to the downside. Looking at on-chain data shows a notable support level between $80,920 and $78,000 that must not be broken. 

Related Reading

Particularly, on-chain analytics from Glassnode point to a thinning of support at the $78,000 level, where only minimal cost basis clusters now exist. The insight follows a sharp move that saw savvy traders scoop up nearly 15,000 Bitcoin at the March 10 low before cashing out at the $87,000 local top.

Support Cushion Rises With Clusters Between $80,000 And $84,000

Bitcoin started the month of March with a crazy crash that saw its price hit below $77,000 on March 10 and March 11. Most of the month was spent by Bitcoin embarking on a recovery from this level, eventually reaching as high as $88,500 last week.

Interestingly, on-chain data from Glassnode shows that some Bitcoin traders took advantage of the crash and bought about 15,000 BTC at this low. However, many addresses from this same cohort sold at the $87,000 local top, leaving behind a depleted buffer zone that may no longer offer the same price stability.

Bitcoin’s strongest cost basis clusters have steadily migrated upward from $78,000 throughout the month, with the most prominent support levels now sitting between $80,920 and $84,100. Approximately 20,000 BTC were acquired at $80,920, 50,000 BTC at $82,090, and another 40,000 BTC at around $84,100. These fresh accumulations are now the new zones of confidence among recent buyers that may offer cushions for the recent market dip.

At the time of writing, Bitcoin is trading at $83,120, meaning that it has lost the zone of 40,000 BTC around $84,100. This puts the onus on $82,090 and, subsequently, the $80,920 price levels. However, if the correction sharpens further, it wouldn’t be until after $78,000 that structural support reappears at $74,000 and $71,000, where long-term conviction buying occurred, estimated at 49,000 BTC and 41,000 BTC, respectively.

Image From X: Glassnode

$95,000 Cost Basis Cluster Grows With Cooling Demand

As support continues to climb gradually, resistance appears to be firming near the $95,000 mark. Investor cost basis data shows an increase of 12,000 BTC clustered at this level since March 24.

This implies that some investors now anticipate a top forming around $95,000, and selling activity could become more pronounced if prices approach that zone. This resistance, alongside the support levels, could see Bitcoin confined within a narrowing range in the short term.

Related Reading

Glassnode data confirms that long-term holders (addresses holding Bitcoin for more than 150 days) have been the primary source of profit-taking for a while. Long-term holders’ profit-taking is now nearly matched by the losses endured by short-term traders who have been holding Bitcoin for less than 155 days. 

Image From X: Glassnode

Featured image from Tech Research Online, chart from TradingView