WisdomTree Debuts On-Chain Fund Bringing Options Income Strategy to Blockchain

• WisdomTree launches EPXC, a tokenised digital fund using a put-writing strategy on SPY-linked options, available to retail and institutional investors.
• The fund targets 2.5% premiums bi-weekly, aiming to provide income and manage downside volatility compared with traditional equity strategies.
• EPXC is the fifteenth tokenised fund, expanding WisdomTree’s blockchain offerings across Ethereum, Avalanche, and Base, reflecting growing adoption of tokenised financial products and stablecoins.

WisdomTree has launched the WisdomTree Equity Premium Income Digital Fund, tokenised as EPXC and listed as WTPIX, available to both institutional and retail investors through its Prime and Connect platforms. 

The fund seeks to track the Volos US Large Cap Target 2.5% PutWrite Index before fees and expenses, using a put-writing strategy with cash-secured options linked to SPY. This approach has long been employed by professional investors to target higher yields while managing equity market volatility.

WisdomTree already manages a traditional fund tracking the same benchmark and notes that this digital, onchain version offers potential for enhanced risk-adjusted returns compared with S&P 500 exposure or similar covered call strategies. 

Tokenising the fund enables investors familiar with digital assets to access regulated real-world asset exposure without leaving blockchain infrastructure. EPXC is the fifteenth tokenised fund available on WisdomTree’s platforms, providing users with options for diversification and income-generating allocations.

The fund aims to generate income through twice-monthly premiums earned by selling SPY-linked put options, targeting a 2.5% premium. This structure is intended to perform comparatively well in flat or falling equity environments by relying on option premium income rather than market appreciation alone.

Related: Citadel’s Tokenised-Stock Warning Puts DeFi in the Crosshairs of Federal Rulemaking

EPXC and Market Implications

WisdomTree highlights that derivatives and blockchain exposure involve risks, including volatility, liquidity constraints, cybersecurity threats, and possible record-keeping or regulatory issues within distributed ledger systems. Investors are encouraged to read the prospectus to understand the full risk profile. The fund is distributed by WisdomTree Securities, Inc.

The firm continues to expand its tokenisation efforts, operating 15 funds across Ethereum, Avalanche, and Base. Its Government Money Market Digital Fund is the most active, currently holding more than US$730 million (AU$1.124 billion) in assets. Some industry participants view this growth as part of a broader trend, reflecting the increasing adoption of tokenised financial products and the growing role of stablecoins within the digital asset ecosystem.

Related: IMF Warns Fragmented Global Rules Could Undermine Stablecoin Market Stability

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