WisdomTree Third-Quarter Crypto Assets’ AUM Drop 36% As Market Losses Continue

WisdomTree is a New York-based financial investment company. released its latest earning report showing the asset manager’s cryptocurrency holdings have declined by 36% and now stands at $178 million in the third quarter as of September 30.

WisdomTree stated that its holdings suffered a drop of $87million (36%) in the third-quarter due to market volatility. The report states that the company had $265 million in crypto assets as of the end the second quarter, while $178 million was at the end the third quarter (July-August and September).

The report indicated that the company’s crypto holdings have now reduced 56% since January, from $406 million. WisdomTree reported that it had $70.9 billion of assets under management as of the third quarter.

This is due to the decline in holdings and the global crypto market capital, which fell from $2.3 trillion in January 2017 to $1.02 trillion today.

Jarrett Lilien, WisdomTree’s President, and Chief Operating Officer said that the firm has not been deterred by the market crisis, saying that the company’s approach is to bring crypto mainstream.

WisdomTree was one of many crypto asset managers who were affected by the prolonged and boring crypto winter. Many listed crypto businesses have lost investors and suffered severe downgrades by the brokerages.

The performance These firms include PayPal and Coinbase among others. Some (like BlockFi) have recently announced reductions in their headcounts, while others (like Voyager Digital and Celsius Network, Arrow Three Capital and many others) have declared bankruptcy protections.

There has been a steady rise in outflows of crypto investment products following the TerraUSD collapse, raising concerns about the survival and sustainability many crypto asset management businesses.

Although small crypto funds have struggled to survive, the downturn has allowed leading asset managers to rethink risk management strategies.

Source: Shutterstock



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