During the period covered by the third quarter, the total value of cryptocurrency assets under administration by WisdomTree decreased from $265 million to $178 million. In addition, the fund's cryptocurrency holdings have dropped by 56% since January of this year, when they stood at $406 million in total value.
Jarret Lillien, president and chief operating officer of WisdomTree, responded to the current article by saying, "Our move is to bring cryptocurrencies mainstream." Jarret Lillien further stated that the company's goal is to enter the world of digital assets with tokenized exposures and Blockchain-based funds in order to bring conventional exposures such as equities, commodities, and fixed income with it.
"Right now, we are laying the groundwork that will enable us to take the lead in the impending transformation of financial services and stake our claim to the most prominent positions in the digital business. "In addition, by making this step, we put ourselves in a position to obtain an even bigger opportunity, which is to move deeper into blockchain-enabled finance, which is an area of finance that combines spending, saving, and investing," Jarret Lillien explained.
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As a direct reaction to the falling prices of crypto assets and the general crypto market cap, they have reduced the amount of cryptocurrency that they own. As of January, it was around $2.3 trillion, but it has since dropped down to the region of roughly $1 trillion.
Commentary from Jono Steinberg Regarding the Announcement
After noting that WisdomTree had reached another important milestone with the SEC's approval, Jono Steinberg made a comment about the decline in the amount of cryptocurrency holdings. In a post he made on the company's blog, he stated that "we are still highly focused on delivering investors the greatest product outline to access numerous different asset classes."
In the past, the asset management company had to contend with strong price pressure during the previous quarter as a result of the SEC's decision to reject its application for a spot bitcoin ETF. Despite rolling over the decision between March and August 2022, the Securities and Exchange Commission (SEC) did not approve the petition for the WisdomTree Bitcoin Trust earlier this month.
The financial watchdog, which is still working on the most recent rejections, noted that WisdomTree did not correctly match up to its responsibilities to secure the funds of investors, avoid engaging in illicit activities, and prevent price movement manipulation.
