• WisdomTree’s crypto holdings decreased by 60% in Q4 of 2022.
• The drop in value was due to the bear market in Bitcoin and other cryptocurrencies.
• Despite a rise in quarterly income, WisdomTree reported a net loss of $28.3 million.
WisdomTree’s Crypto Holdings Drop Over 60%
The prolonged bear market in Bitcoin and other cryptocurrencies led to a dramatic decrease in the value of WisdomTree’s digital asset holdings in the fourth quarter of 2022. As of December 31, 2022, the total value of the cryptocurrency funds managed by WisdomTree was $136 million – down from $163 million at the beginning of the quarter, representing a depreciation of $23 million.
Redemptions and Withdrawals
Redemptions and withdrawals from the funds totaled only $4 million throughout this period. Furthermore, several of WisdomTree’s funds are dedicated to blockchain technology, allowing investors to gain exposure to digital assets via established financial mechanisms.
Net Losses for Ninth Straight Quarter
Despite a rise in quarterly income to $73.31 million, there was a net loss of $28.3 million for the period. For nine consecutive quarters, net inflows exceeded outflows totaling $5.3 billion. Additionally, WisdomTree’s crypto portfolios dropped by another $235 million in Q2 of 2022 – accounting for most if its total losses year-over-year..
WisdomTree received approval from the SEC during December 2020 to add nine blockchain-enabled ETFs onto its platform however, attempts to create a Bitcoin spot exchange-traded fund were rejected repeatedly by securities regulators..
Overall, despite being able to increase their quarterly income substantially compared with previous periods; Wisdom Tree still reported significant losses due largely to their cryptocurrency portfolio dropping significantly over 62% year over year – leading them into net losses for nine consecutive quarters .