Options strategies on-chain! WisdomTree launches tokenized fund, Goldman Sachs prepares to follow

Global asset management company WisdomTree has launched a new digital asset fund, EPXC, bringing traditional options strategies on-chain by generating income through the sale of cash-secured put options. WisdomTree operates 15 tokenized funds across multiple blockchains, including Ethereum, with its government money market digital fund assets exceeding $730 million. Institutions such as Goldman Sachs and BNY Mellon are also following the tokenization trend.

EPXC Tokenized Fund Brings Options Strategies On-Chain

The WisdomTree Equity Premium Income Digital Fund (ticker: EPXC, fund code: WTPIX) aims to track the price and yield performance of the Volos US Large Cap Target 2.5% PutWrite Index. This benchmark index simulates a systematic “put writing” strategy, in which the index sells cash-secured put options to generate income. Rather than trading options directly on the S&P 500 Index, this options strategy uses contracts linked to the SPDR S&P 500 ETF Trust (SPY), earning option premiums by acting as the options seller.

For investors concerned about volatility or downside risk, selling put options can provide a predictable stream of premium income and moderate cushioning during stable or slightly declining markets. This options strategy has proven effective in traditional markets; since its launch in 2007, the CBOE PutWrite Index has demonstrated lower volatility and stable returns across multiple market cycles. Bringing this mature options strategy on-chain marks a replication and innovation of TradFi products on the blockchain.

EPXC is open to both institutional and individual investors. As a tokenized fund, crypto users can also participate and benefit from blockchain infrastructure. Compared to traditional fund structures, blockchain offers faster settlement speeds and more flexible fund transfers. Traditional fund subscription and redemption typically take T+1 or T+2 days to settle, while tokenized funds can achieve instant settlement—a key advantage of blockchain technology in improving financial efficiency.

WisdomTree’s Head of Digital Assets, Will Peck, stated that this launch aims to give investors more choices for executing investment strategies on-chain, marking another step forward in the company’s broader push into tokenized assets. This statement shows that WisdomTree views tokenized funds not as a single product line, but as a core component of the company’s long-term strategy.

How the Options Income Strategy Works and Its Advantages

The core logic of the cash-secured put selling strategy is to exchange limited downside risk for stable premium income. When investors sell put options, they collect the premium paid by option buyers and, in return, commit to buying the underlying asset at a set price (strike price) upon option expiry. If the market remains stable or rises, the options are not exercised, and the seller keeps the entire premium as profit. Even if the market declines slightly, as long as the drop is less than the collected premium, the seller can still make a profit.

EPXC adopts a “cash-secured” put selling strategy, meaning the tokenized fund holds enough cash or cash equivalents to fulfill potential purchase obligations. This conservative risk management approach reduces leverage risk, making the options strategy more suitable for risk-averse investors. The target 2.5% parameter indicates the strategy focuses on out-of-the-money options (strike price below current market price), which have a lower probability of being exercised but also offer smaller premium income.

Three Key Investment Advantages of the EPXC Tokenized Fund

Stable Income Stream: Generates predictable premium income through continuous put option selling, suitable for investors seeking cash flow.

Downside Buffer: Collected premiums can partially offset market losses and perform better in choppy markets.

Blockchain Efficiency: Tokenized structure enables 24/7 trading, instant settlement, and lower operating costs.

The advantages of tokenized funds over traditional fund structures are clear. First is composability: tokenized funds can integrate seamlessly with DeFi protocols for collateralization, lending, or liquidity provision. Second is global accessibility: with a digital wallet, investors can participate 24/7, unrestricted by geography or business hours. Third is transparency: all transactions and holdings on the blockchain are publicly verifiable, increasing investor confidence.

WisdomTree’s 15 Tokenized Fund Product Lines

(Source: RWA XYZ)

WisdomTree is one of the earliest asset managers to enter tokenization, currently operating 15 tokenized funds on multiple blockchains, including Ethereum, Avalanche, and Base. This number is particularly striking, as most traditional asset management firms remain on the sidelines while WisdomTree has established a comprehensive product lineup. The multi-chain strategy shows the company is not tied to a single ecosystem, but instead flexibly allocates based on the technical characteristics and user base of each blockchain.

According to industry data, the company’s government money market digital fund (a tokenized version of a traditional government money market fund that invests in short-term US government securities) is its most active tokenized product, with assets exceeding $730 million. This scale is considerable in the tokenized fund sector, indicating rapidly rising acceptance among institutional and individual investors for bringing traditional financial products on-chain.

Money market funds are among the most conservative investment tools in traditional finance, typically investing in low-risk assets such as short-term US Treasuries, commercial paper, and certificates of deposit. Tokenizing them and reaching $730 million in scale demonstrates the practical value of blockchain technology in improving the efficiency of traditional financial products. These funds mainly come from investors seeking stable returns while maintaining liquidity, who value the instant redemption and enhanced transparency provided by the tokenized version.

As previously reported by Cointelegraph, this asset management firm also launched a tokenized private credit fund in September. This tokenized fund provides investors with a blockchain-based private credit investment channel and quickly attracted significant capital inflows after launch. Private credit has traditionally been a less liquid asset class, with high minimum investment thresholds and long lock-up periods. Tokenization lowers entry barriers and offers the possibility of secondary market trading, which is revolutionary for improving asset liquidity.

Wall Street Giants Follow Tokenized Fund Trend

The broader finance and wealth management industry has been slower to adapt, with institutions such as Goldman Sachs and BNY Mellon only recently launching tokenized money market products. This trend shows Wall Street is taking the application potential of blockchain technology in asset management seriously. Goldman Sachs launched a digital asset platform based on a private blockchain in 2024, while BNY Mellon has partnered with Chainalysis to develop tokenization solutions.

Some industry insiders believe this trend may be a response to the rapid rise of stablecoins, which now serve as the de facto cash instrument in most areas of the digital asset ecosystem. Stablecoins like USDT and USDC have a combined market cap exceeding $200 billion, with daily trading volumes far surpassing traditional payment systems. Traditional financial institutions realize that failing to actively participate in tokenization could mean losing dominance in the next generation of financial infrastructure.

The competition and cooperation between tokenized funds and stablecoins will shape the future financial landscape. Stablecoins provide basic value storage and transfer functions, while tokenized funds bring more complex investment strategies and yield sources on-chain. The combination of the two can create entirely new financial products, such as using stablecoins as collateral for leveraged investments in tokenized funds, or using tokenized fund shares as high-quality collateral in DeFi protocols.

Future Directions for the Tokenized Fund Market

Product Diversification: From money market funds and options strategies to private credit, more traditional financial products will be tokenized.

Improved Regulatory Framework: As institutional participation increases, regulators will establish clearer oversight frameworks for tokenized assets.

Deeper DeFi Integration: Integration between tokenized funds and decentralized finance protocols will create new yield opportunities.

WisdomTree’s options strategy tokenized fund, EPXC, is the latest example of this trend. It not only brings mature options strategies on-chain but also demonstrates the limitless possibilities of integrating traditional finance with blockchain technology.