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WisdomTree Triples Down on Future Blockchain Focus

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  • “It would be a mistake to confuse the blockchain use case, crypto, with the broader opportunities we are pursuing,” said WisdomTree’s COO.
  • The company last month obtained approval for a fund to digitize stock ownership records on the blockchain, and has nine more applications.

WisdomTree executives even say blockchain-enabled digital wrappers are the future of wealth management. Meanwhile, the ETF-focused fund group plans to roll out a digital asset consumer app in the first quarter of 2023.

The company’s leaders on Friday doubled down on a shift to a focus on digital assets during WisdomTree’s earnings call, bringing bonds, stocks and commodities into the digital world through blockchain-enabled funds and tokenized exposures. reiterated the goal of bringing

“Cryptocurrencies are interesting, but the real opportunity is in blockchain-enabled finance,” Chief Operating Officer Jaret Lillian said by phone. “It would be a mistake to confuse the blockchain use case, crypto, with the broader opportunities we are pursuing.”

CEO Jonathan Steinberg said that in addition to removing “investment” from the company name, the company will change its ticker from WETF to WT.

According to ETF.com, the company trades 78 ETFs in the U.S. and manages about $52 billion in assets under management, but the CEO said the adjustments were “a natural part of our company” as the company looks to expand. A tribute to the history of evolution and innovation.”

The company’s assets under management fell 4.6% from the second quarter to approximately $71 billion in the third quarter due to market declines. It has since recovered to nearly $75 billion, with net inflows reaching $1.8 billion in October.

It increased slightly from $151 million on June 30 to $163 million at the end of the third quarter. Net flows in this segment totaling $41 million in 2022 as of September 30 were flat compared to the previous quarter.

The company posted adjusted earnings per share of $0.06, which was in line with estimates. WisdomTree’s stock is down about 16% year-to-date, but at 12:30 p.m. ET he was down 1.5%.

Product development centered on blockchain

The executive said on the phone that the company Blockchain-native financial services mobile appWisdomTree Prime is in beta testing and will be rolled out nationwide by the end of the first quarter of 2023.

WisdomTree CEO Jonathan Steinberg says the company has spent about $20 million on tokenization and WisdomTree Prime efforts so far. Company executives declined to comment on the app’s beta user count or transaction volume to date.

The company also got SEC approval Launch a short-term financial digital fund Last month — an offering to digitize a fund’s shareholding record on the Ethereum or Stellar blockchains. Executives say the fund is a first step toward bringing traditional financial assets into the digital ecosystem and enabling blockchain rail to improve the investor experience through near-instantaneous settlement finality and more. .

WisdomTree has applied for nine additional funds to be part of its suite of blockchain-enabled funds that include fixed income and equity strategies, executives said.

According to Will Peck, head of digital assets at WisdomTree Prime, such services are expected to be available only via WisdomTree Prime at first.

Journey to US Spot Bitcoin ETF

WisdomTree’s proposed US spot Bitcoin ETF was rejected by the SEC last month.

grayscale investments Proceed with SEC litigation For rejecting the company’s proposal to convert Bitcoin Trust (GBTC) into an ETF.

Peck said Friday that the company has no plans to participate in Grayscale’s litigation, adding instead that WisdomTree aims to “work productively” with the SEC.

Peck previously told Blockworks: “We recognize that this is a slow process, and we do not intend to stop innovating in other ways in the meantime.”

The company offers crypto ETPs including spot Bitcoin products in Europe.

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  • Ben Strack is a Denver-based reporter covering macro and crypto native funds, financial advisors, structured products, and the integration of digital assets and decentralized finance (DeFi) into traditional finance. Prior to joining Blockworks, he covered the wealth management industry at Fund Intelligence and was a reporter and editor for various local Long Island newspapers. He graduated from the University of Maryland with a journalism degree.Email Ben [email protected]

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