Investment management firm Wisdom Tree reported a 36% decline in its crypto holdings, down to $178 million at the end of the third quarter.
in the income statement filed with the SEC On October 28, Wisdom Tree announced that total assets under management fell 4.6% to $70.9 billion, recording $1.7 billion in inflows since the beginning of the year.
For crypto-focused assets, Wisdom Tree holdings fell 36%, losing about $87 million from June to September. The company’s financial statements put him at $265 million in crypto assets at the end of the second quarter, which dropped to about $178 million at the end of the third quarter.
Year-over-year, Wisdom Tree’s cryptocurrency holdings have decreased by approximately 55% from $277 million to $178 million. The decline in earnings is largely due to Bitcoin’s performance, which has lost more than 60% of its value over the past year.
Nonetheless, Wisdom Tree President Jarrett Lillian is optimistic that investment firms will recover as he continues to seek approval from the SEC for his Bitcoin Spot ETF.
“We are building a foundation that can lead the future evolution of financial services and claim the deepest exposure of digital wrappers…”
He added that WisdomTree is working to expand its blockchain-enabled services to integrate spending, saving and investing.
Wisdom Tree CEO Jonathan Steinberg said the firm will expand beyond ETFs and reflect the pivot in its identity by Nov. 7. It will be named Wisdom Tree and will trade under the WT ticker. Remove ETFs from
The decline of the cryptocurrency market is being felt not only by the average individual investor, but also by large investment firms.
Venture capital firm a16z, which has invested over $7.6 billion in cryptocurrencies, said it lost more than 40% of its assets in the first half of 2022. It raised about $4.5 billion in May to take advantage of the bear market.
However, a16z partner Chris Dixon said the company is unfazed as it continues to invest in crypto to ensure that entrepreneurs and developers continue to work.