SEC Gives WisdomTree Approval to Trade Tokenized Money Market Fund 24/7
WisdomTree has received SEC approval for its first-of-its-kind tokenized money market fund, WTGXX. This is a significant development, as it allows the fund to trade and settle 24/7.
According to Will Peck, head of digital assets at WisdomTree, this approval marks a structural shift in asset management. He believes that stablecoins have proven that people want 'dollars that never sleep,' and WTGXX attaches a government-backed yield product to that expectation.
The fund holds short-term Treasuries, targets a $1 share price, and runs on nine blockchains, including Ethereum and Solana. It has roughly $730 million in assets yielding around 3.5%.
Traditionally, mutual funds have only made transactions once a day, due to the forward pricing rule (SEC Rule 22c-1). However, ETFs changed this by allowing a primary market and secondary market where fund shares can trade without changing the underlying portfolio.
WisdomTree is now leveraging this model for its money market fund. The key difference between an ETF and WTGXX is that the secondary market is on-chain, always open, and settles in stablecoins.