Related Party Transactions

9 Months Ended

Sep. 30, 2024

Related Party Transactions [Abstract]

Related Party Transactions

17. Related Party Transactions

Investment Advisory Agreements

The Company’s revenues are derived primarily from investment advisory agreements with related parties. Under these agreements, the Company has licensed to related parties the use of certain of its own indexes for the U.S. WisdomTree ETFs, WisdomTree Digital Funds and WisdomTree UCITS ETFs. The relevant boards of trustees or boards of directors (including certain officers of the Company) of each of the related parties is primarily responsible for overseeing the management and affairs of the entities for the benefit of their respective stakeholders and have contracted with the Company to provide for general management and administration services. The Company is also responsible for certain expenses of the related parties, including the cost of transfer agency, custody, fund administration and accounting, legal, audit, and other non-distribution services, excluding extraordinary expenses, taxes and certain other expenses, which are included in fund management and administration in the Consolidated Statements of Operations. In exchange, the Company receives fees based on a percentage of the ETPs’ and the Digital Funds’ average daily net assets. A majority of the independent members of the respective board of trustees or board of directors are required to initially and annually (after the first two years) approve the advisory agreements of the U.S. WisdomTree ETFs and the WisdomTree Digital Funds and these agreements may be terminated by such board of trustees or board of directors upon notice.

The following table summarizes accounts receivable from related parties which are included as a component of accounts receivable in the Consolidated Balance Sheets:

	September 30, 2024		December 31, 2023
Receivable from WTT	$	23,986	$	21,226
Receivable from ManJer Issuers		5,013		4,411
Receivable from WMAI and WTICAV		4,765		2,874
Total	$	33,764	$	28,511

The allowance for credit losses on accounts receivable from related parties is insignificant when applying historical loss rates, adjusted for current conditions and supportable forecasts, to the amounts outstanding in the table above. Amounts outstanding are all invoiced in arrears, are less than 30 days aged and are collected shortly after the applicable reporting period.

The following table summarizes revenues from advisory services provided to related parties:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Advisory services provided to WTT	$	72,201	$	57,656	$	206,478	$	159,595
Advisory services provided to ManJer Issuers		23,567		24,703		70,296		75,337
Advisory services provided to WMAI and WTICAV		5,891		4,239		16,324		11,307
Total	$	101,659	$	86,598	$	293,098	$	246,239

Investments in WisdomTree Products

The Company also has investments in certain WisdomTree products of approximately $81,202 and $52,566 at September 30, 2024 and December 31, 2023, respectively. This includes $20,524 and $18,308, respectively, of seed investments in certain affiliated Digital Funds advised by WT Digital Management, referred to herein as “other assets–seed capital.” The Company also has invested an additional $6,000 in the WisdomTree Government Money Market Digital Fund at September 30, 2024.

Net unrealized and realized gains related to trading WisdomTree products were $554 and $2,278, respectively, during the three and nine months ended September 30, 2024 and ($591) and $250, respectively, during the comparable periods in 2023. Such gains are recorded in other losses, net on the Consolidated Statements of Operations.