Q2 2023: Best-in-Class Flow Growth, Record AUM and Tokenization Roll-Out On Display in Q2

July 28, 2023

On this morning’s earnings call, I was proud to share WisdomTree’s best-in-class pace of organic growth among our public asset manager peers, record-high assets under management (AUM), the launch of our tokenization initiatives and the meaningful margin expansion potential embedded in our business model. As in the past, I will expand upon our success for you, our clients, our partners, our stockholders and our broader network.

WisdomTree is off to its second-best start to the year in company history with approximately $8.7 billion of net inflows through June, including inflows in all eight of our major product categories. In addition, our 21% annualized pace of organic flow growth remains best-in-class among our public asset manager peers. Our success in the second quarter continues to be driven by an impressive product lineup that’s generated broad and deep inflows across the entire suite and increased traction with current partners in our managed models franchise while expanding relationships with key industry partners like LPL and CORBU.

These accomplishments propelled our AUM to record-highs, which now sits at $97 billion – and we are quickly approaching $100 billion. Achieving this key milestone will be the result of years of dedication, hard work, planning and executing on our growth strategy, and I see ample runway for continued growth.

The second quarter also brought the launch of our WisdomTree Prime™ platform, a key piece of our broader asset tokenization initiative. WisdomTree Prime™ is a personal finance app that empowers users to save, spend and invest and brings tokenization and blockchain-enabled finance to the center of a consumer’s financial life (see www.wisdomtreeprime.com for more details). The app is live in the Apple and Android app stores and available to customers in 21 states so far. We expect near full coverage of the U.S. market by year end.

Currently, the WisdomTree Prime™ platform includes 9 blockchain-enabled funds, a dollar token and gold token as well as Bitcoin and Ether. From here, we plan to continue iterating and enhancing the platform in the coming quarters through additional products and features like peer-to-peer transfers and debit card payments.

While we are laser-focused on strong organic growth of the WisdomTree Prime™ platform, we are also exploring other opportunities to expand our footprint through business-to-business and business-to-business-to-customer applications. Whether through financial services firms looking to leverage blockchain technology, tech firms looking to deepen relationships with customers or institutional players looking for on-chain use cases with a more regulated product set – we have lots of optionality, with many ways to grow the WisdomTree Prime™ platform, and we are leaving no stone unturned.

Our peers are waking up to the opportunity in asset tokenization; this is not only a validation of our tokenization strategy, but also underscores WisdomTree’s strong position as an early mover and the first with a robust product set. We will look to leverage our multi-year head start through additional products within the WisdomTree Prime™ ecosystem, while also exploring potential third-party distribution opportunities.

It’s a very exciting time here at WisdomTree. We have strong momentum in our ETP flows. We have record-high AUM. We have a significant margin expansion opportunity. And we have a massive opportunity to capitalize on the secular shift toward blockchain-enabled finance through our asset tokenization initiatives and our WisdomTree Prime™ platform. I look forward to much more to come.