What changed in this filing

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

2026-05-06 compared with 2025-11-06 · 33 added, 29 removed, 34 unchanged (65% of the section changed)

4 unchanged sentences

Market risk to us generally represents the risk

of changes in the value of our ETPs and Digital Funds that results from fluctuations in securities or commodity prices, foreign currency

exchange rates against the U.S.

of changes in the value of our products that results from fluctuations in securities or commodity prices, the value of underlying real

assets (including farmland), foreign currency exchange rates against the U.S.

dollar, and interest rates.

Nearly all our revenues are derived from advisory agreements for the WisdomTree

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

Nearly all our revenues are

derived from advisory agreements for the WisdomTree ETPs and other managed investment vehicles, including those acquired through the Ceres

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

ETP portfolios we manage and, in the case of other managed investment vehicles, on investors’ capital account balances, which are

influenced by the value of the underlying farmland assets.

Fluctuations in the value of the ETPs are common

1 unchanged sentence

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.

With respect to farmland-focused investment products, changes in farmland values may be driven by factors such as agricultural commodity

prices, farm income, interest rates, inflation expectations, land supply and demand dynamics, climate and weather conditions, and government

agricultural and environmental policies.

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

securities or real assets and, in turn, the underlying AUM or investors’ capital account balances on which our revenues are earned.

These declines may cause investors to withdraw funds from our products 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 $303.9 million as of December 31, 2024 and September 30, 2025,

respectively.

During the three months ended September 30, 2025, we recognized gains on these financial instruments of $1.1 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.

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 financial instruments which totaled $268.2 million and $323.7 million as of December 31, 2025

and March 31, 2026, respectively.

During the three months ended March 31, 2026, we recognized losses on these financial instruments of

$0.9 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, 4.625% for the 2030 Notes and 4.50% for the 2031 Notes.

Therefore, we

have no direct financial statement risk associated with changes in interest rates.

Therefore, we have

no direct financial statement risk associated with changes in interest rates.

However, the fair value of the Convertible Notes changes

8 unchanged sentences

dollar) for consolidation purposes.

A substantial portion of the advisory fees earned on our European

listed ETPs are paid in U.S.

dollars (and also paid in British pounds, euros as well as gold, other precious metals and cryptocurrency,

as described below);

however, expenses for corporate overhead are generally incurred in British pounds and euros.

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.

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

11 unchanged sentences

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