What changed in this filing

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

2025-05-09 compared with 2024-11-07 · 50 added, 10 removed, 11 unchanged (85% of the section changed)

9 unchanged sentences

Under these agreements, the advisory fee we receive is based on the average market value of the assets in the WisdomTree ETP portfolios

Fluctuations in the value of the ETPs are common

and are generated by numerous factors such as market volatility, the global economy, inflation, changes in investor strategies and sentiment,

availability of alternative investment vehicles, domestic and foreign government regulations, emerging markets developments and others.

Accordingly, changes in any one or a combination of these factors may reduce the value of investment securities and, in turn, the underlying

AUM on which our revenues are earned.

These declines may cause investors to withdraw funds from our ETPs in favor of investments that

they perceive as offering greater opportunity or lower risk, thereby compounding the impact on our revenues.

We believe challenging and

volatile market conditions will continue to be present in the foreseeable future.

Interest Rate Risk

We invest our corporate cash in short-term interest

earning assets, primarily in federal agency debt instruments, WisdomTree fixed income ETFs, U.S.

treasuries, corporate bonds, money market

instruments at a commercial bank and other securities which totaled $134.0 million and $110.0 million as of December 31, 2024 and March

31, 2025, respectively.

consolidation

predominantly

cryptocurrency,

Cryptocurrency

cryptocurrencies

cryptocurrency.

cryptocurrencies

cost-effective

During the three months ended March 31, 2025, we recognized losses on these financial instruments of $0.4 million

and any gains/losses recognized in the future may be material to our operating results.

We do not anticipate that changes in interest

rates will have a material impact on our financial condition or cash flows.

In addition, our Convertible Notes bear interest

at fixed rates of 3.25% for the 2026 Notes and the 2029 Notes and 5.75% for the 2028 Notes, respectively.

Therefore, we have no direct

financial statement risk associated with changes in interest rates.

However, the fair value of the Convertible Notes changes primarily

when the market price of our common stock fluctuates or interest rates change.

Exchange Rate Risk

We are subject to currency translation exposure

on the results of our non-U.S.

operations, primarily in the U.K.

Foreign currency translation risk is the risk that exchange

rate gains or losses arise from translating foreign entities’ statements of earnings and balance sheets from functional currency

to our reporting currency (the U.S.

dollar) for consolidation purposes.

The advisory fees earned on our European listed ETPs are predominantly

dollars (and also paid in gold, other precious metals and cryptocurrency, as described below);

however, expenses for corporate

overhead are generally incurred in British pounds.

Currently, we do not enter into derivative financial instruments aimed at offsetting

certain exposures in the statement of operations or the balance sheet but may seek to do so in the future.

Exchange rate risk associated with the euro

is not considered to be significant.

Commodity and Cryptocurrency Price Risk

Fluctuations in the prices of commodities and

cryptocurrencies that are linked to certain of our ETPs could have a material adverse effect on our AUM and revenues.

In addition, a portion

of the advisory fee revenues we receive on our ETPs backed by gold, other precious metals and cryptocurrencies are paid in the underlying

metal or cryptocurrency.

While we readily sell the gold, precious metals and cryptocurrencies that we earn under these advisory contracts,

we still may maintain a position.

We currently do not enter into arrangements to hedge against fluctuations in the price of these commodities

and cryptocurrencies and any hedging we may undertake in the future may not be cost-effective or sufficient to hedge against this exposure.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk