Group 1 - The article discusses the expertise of Ernest Hoffman as a Crypto and Market Reporter for Kitco News, highlighting his extensive experience in market news since 2007 [3] - It mentions Hoffman's background in establishing a web-based audio news service and producing economic news videos, indicating his significant contributions to the media landscape [3] Group 2 - The article includes a disclaimer stating that the views expressed may not reflect those of Kitco Metals Inc., emphasizing the importance of accuracy in the information provided [4] - It clarifies that the article is for informational purposes only and does not constitute a solicitation for financial transactions [4]

Financial Data and Key Metrics Changes - The company reported revenues of $112.6 million for the quarter, an increase of 4.2% from the first quarter and up approximately 5.2% year-over-year driven by higher average AUM [24] - Year-to-date revenues have grown 8.3% due to higher average AUM and increased other revenues from European listed products, partially offset by lower average fee capture [25] - Adjusted net income for the quarter was $25.9 million or $0.18 per share, excluding $2 million of acquisition-related costs [25] Business Line Data and Key Metrics Changes - The company generated $6.6 billion of inflows year-to-date through June, with approximately $3 billion into U.S. listed products, $3.3 billion into European products, and over $300 million in digital assets [21][22] - The European Defense Fund, with AUM of approximately $3.5 billion, attracted nearly $2.1 billion of flows in the quarter and over $2.8 billion year-to-date [23] - AUM in digital assets has more than doubled since last quarter, reaching $350 million at June 30 and approximately $500 million today [24] Market Data and Key Metrics Changes - The company’s AUM reached a record high of $126 billion at June 30, with U.S. listed AUM at $85.2 billion and European AUM at $40.5 billion, both all-time highs [23] - The acquisition of Cerus Partners is expected to raise at least $750 million into farmland-focused strategies by 2030, which would more than double their current base [7][20] Company Strategy and Development Direction - The acquisition of Cerus Partners is aimed at expanding the company’s platform into U.S. farmland investment management, which is seen as a stable and underpenetrated asset class [6][9] - The company plans to leverage its institutional capabilities across distribution, product structuring, and technology to broaden access to farmland investing [11] - The company is focused on accretive capital deployment opportunities, including share repurchases and other strategic initiatives [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of farmland as an asset class, highlighting its historical performance during market downturns [12][13] - The company anticipates that the acquisition will diversify revenue, support operating margins, and provide new ways to serve clients [15] - Management is optimistic about the digital assets segment, with significant growth expected in the stablecoin market [34][81] Other Important Information - The company has received several accolades in 2025, including being ranked one of America's most innovative companies and recognized for its digital asset processing solutions [36] - The acquisition consideration includes $275 million upfront in cash and an earn-out of up to $225 million contingent on achieving specific revenue growth targets [18] Q&A Session Summary Question: Where does Cerus raise funds from and what is the fund structure? - The fund is a combination of an Evergreen fund, designed to be a long-term partner for farmers, rather than a traditional drawdown fund [41][42] Question: How durable and predictable are performance fees from Cerus? - Performance fees are driven by rental income and the mark-to-market of the farmland portfolio, with historical appreciation rates providing a stable basis for these fees [44][46] Question: Which end customer market will be targeted first for the farmland opportunity? - The RIA channel is expected to be the primary focus for distributing farmland investments, leveraging existing client relationships [88] Question: What are the key growth drivers for digital assets in the second half of 2025? - The focus will be on regulatory compliance and expanding functionality, with significant growth anticipated in the stablecoin market [90][92]

Financial Data and Key Metrics Changes - The company reported revenues of $112.6 million for the quarter, an increase of 4.2% from the first quarter and up approximately 5.2% year-over-year driven by higher average AUM [24] - Year-to-date revenues have grown 8.3% due to higher average AUM and increased other revenues from European listed products, partially offset by lower average fee capture [25] - Adjusted net income for the quarter was $25.9 million or $0.18 per share, excluding $2 million of acquisition-related costs [25] Business Line Data and Key Metrics Changes - The company generated $6.6 billion of inflows year-to-date through June, with approximately $3 billion into U.S. listed products, $3.3 billion into European products, and over $300 million in digital assets [21][22] - The European Defense Fund, with AUM of approximately $3.5 billion, attracted nearly $2.1 billion of flows in the quarter and over $2.8 billion year-to-date [23] - AUM in digital assets has more than doubled since last quarter, reaching $350 million at June 30 and approximately $500 million today [24] Market Data and Key Metrics Changes - The company’s AUM reached a record high of $126 billion at June 30, with U.S. listed AUM at $85.2 billion and Europe at $40.5 billion, both all-time highs [23] - The farmland investment market is valued at $3.5 trillion, which is highly fragmented and under-institutionalized, presenting a significant growth opportunity [8] Company Strategy and Development Direction - The acquisition of Cerus Partners is aimed at enhancing the company’s capabilities in farmland investment, which is seen as a stable and underpenetrated asset class [5][7] - The company plans to raise at least $750 million into farmland-focused strategies by 2030, which would more than double current performance fee revenues [6][20] - The company is focused on leveraging its distribution capabilities to scale the farmland investment business and expects to manage $10 billion in farmland assets within ten years [10][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of farmland investments, highlighting its low correlation with traditional asset classes and its role in risk mitigation and inflation protection [11][12] - The company is optimistic about the integration of Cerus and the potential for significant revenue growth driven by the farmland investment strategy [15][70] - Management noted that the stablecoin market is projected to grow significantly, and the company is well-positioned to benefit from this trend [34][80] Other Important Information - The acquisition consideration includes $275 million upfront in cash and an earn-out of up to $225 million contingent on achieving a five-year revenue CAGR of 12% to 22% [17] - The company is monitoring foreign exchange headwinds that could impact expense guidance, but overall impacts are expected to be immaterial [26] Q&A Session Summary Question: Inquiry about Cerus' fund structure and fundraising plans - Management clarified that Cerus operates a combination of evergreen funds and has a strong distribution team to help raise capital [42][44] Question: Durability of performance fees from Cerus - Management explained that performance fees are driven by rental income and market appreciation of farmland, with historical stability in the asset class [45][50] Question: Competitive landscape in farmland investment - Management acknowledged minimal competition from major asset managers and highlighted the opportunity to scale in a fragmented market [56] Question: Digital asset strategy and growth expectations - Management expressed excitement about the growth potential in digital assets, particularly in stablecoins and tokenized funds, and emphasized the importance of regulatory compliance [87][90] Question: Distribution strategy for farmland investments - Management indicated that the RIA channel is expected to be a primary focus for distributing farmland investments, leveraging existing client relationships [84][85] Question: Regulatory changes needed for Cerus' assets - Management confirmed that no regulatory changes are necessary to distribute Cerus' assets [95] Question: Mark-to-market process for farmland assets - Management detailed that Cerus marks their farms annually using a structured appraisal process [96] Question: Inclusion of private equity investments in the acquisition - Management clarified that while some private equity investments will remain with the former sellers, the water strategy will be retained [100]

Q2 2025 Results Highlights - WisdomTree reported record global AUM of $126.1 billion as of June 30, 2025[31] - The company experienced net inflows of $3.5 billion in Q2 2025, resulting in a year-to-date total of $6.6 billion through June 30, 2025[31] - Q2 adjusted revenues increased by 4.2% compared to Q1 2025 due to higher average AUM[36] - Adjusted earnings per share (EPS) was $0.18 in Q2 2025[33] Ceres Partners Acquisition - WisdomTree agreed to acquire Ceres Partners, LLC, which manages approximately $1.85 billion in farmland assets[7, 23] - The acquisition consideration includes $275 million in cash at closing and a potential earn-out of up to $225 million in 2030, contingent on Ceres achieving specific revenue growth targets[24] - The company targets over $750 million of fundraising by year-end 2030, doubling Ceres' base fees from current levels[7] Digital Assets Platform - Total WisdomTree tokenized AUM reached $350 million, a 10x growth compared to year-end 2024[63] - WisdomTree Connect has expanded to several different blockchains and gathered over $500 million in assets in 2025 so far through July 2025[70] - WisdomTree Prime AUM reached $4.3 million[63] Model AUA Growth - Model Assets Under Advisement (AUA) reached over $5.2 billion as of Q2 2025, up nearly 40% versus year-end 2024[53]

Group 1 - The Extraordinary Resolution to reduce the principal amount of WisdomTree Brent Crude Oil 3X Daily Short Securities from USD 0.114 to USD 0.0114 was passed on 1 August 2025 [2] - The Deed of Amendment has been executed to implement the proposed amendments to the Trust Deed effective from 1 August 2025 [3]

Core Insights - WisdomTree, Inc. reported revenue of $112.62 million for the quarter ended June 2025, reflecting a year-over-year increase of 5.2% and an EPS of $0.18 compared to $0.16 a year ago, although it fell short of the Zacks Consensus Estimate of $114.36 million by 1.52% [1] - The company has not delivered an EPS surprise, as the consensus EPS estimate was also $0.18 [1] Financial Performance Metrics - WisdomTree's shares have returned +9.1% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change, and the stock currently holds a Zacks Rank 2 (Buy) [3] - The end-of-period Assets Under Management (AUM) stood at $126.10 billion, exceeding the three-analyst average estimate of $125.91 billion [4] - Specific asset categories reported include: - International Developed Market Equity: $21.73 billion, matching estimates [4] - Emerging Market Equity: $10.96 billion, matching estimates [4] - Fixed Income: $22.54 billion, matching estimates [4] - Leveraged & Inverse: $2.63 billion, matching estimates [4] - Commodity & Currency: $26.7 billion, matching estimates [4] - Inflows for Emerging Markets Equity were $28 million, slightly above the average estimate of $27.95 million [4] - Inflows for International Developed Market Equity were $1.65 billion, matching estimates [4] - Inflows for U.S. Equity were $1.29 billion, matching estimates [4] - Cryptocurrency end-of-period assets were $2.09 billion, matching estimates [4] - Operating revenues from advisory fees were $103.24 million, below the estimated $105.9 million but representing a +4.4% change year-over-year [4] - Operating revenues from other income were $9.38 million, below the estimated $10.64 million but reflecting a +15.9% change year-over-year [4]

Core Insights - WisdomTree, Inc. reported quarterly earnings of $0.18 per share, matching the Zacks Consensus Estimate and showing an increase from $0.16 per share a year ago [1] - The company posted revenues of $112.62 million for the quarter ended June 2025, which was 1.52% below the Zacks Consensus Estimate and an increase from $107.03 million year-over-year [2] - The stock has gained approximately 27.2% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.21 on revenues of $123.14 million, and for the current fiscal year, it is $0.75 on revenues of $471.31 million [7] Industry Context - The Financial - Miscellaneous Services industry, to which WisdomTree belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Assets Under Management (AUM) - Record AUM of $126.1 billion, an increase of 8.9% from the prior quarter due to market appreciation and net inflows[3] - WisdomTree reported approximately $128.5 billion in assets under management globally[25] - Average assets during the period for U.S. listed ETFs reached $81,525 million, compared to $80,661 million in the previous quarter, indicating a growth of 1.07%[29] - Digital assets saw an end of period asset value of $350 million as of June 30, 2025, a substantial increase from $132 million at the beginning of the period[29] Net Inflows and Revenue - Net inflows of $3.5 billion, primarily driven by international developed equity and U.S. equity products, with European listed ETP inflows of $2.2 billion during the quarter[3] - Operating revenues of $112.6 million, a 4.2% increase from the prior quarter attributed to higher average AUM[6] - Operating revenues for Q2 2025 reached $112,621 million, up from $108,082 million in Q1 2025, indicating a 4.7% increase[48] - Adjusted net income for Q2 2025 was $25,863 million, an increase from $23,014 million in Q1 2025, representing a 12.1% quarter-over-quarter growth[48] Earnings and Profitability - Diluted earnings per share of $0.17, with adjusted earnings per share of $0.18[1][2] - Gross margin improved to 81.1%, a 0.3 point increase from the prior quarter[7] - Adjusted earnings per share for Q2 2025 was $0.18, up from $0.16 in Q1 2025, reflecting a 12.5% increase[48] - Net income for Q2 2025 was $24.8 million, compared to $24.6 million in Q1 2025 and $27.3 million in Q2 2024, with diluted earnings per share at $0.17[23] Operating Expenses - Operating expenses rose by 5.5% from Q1 2025 and by 6.1% from Q2 2024, primarily due to acquisition-related costs and higher third-party distribution fees, partially offset by lower compensation expenses[23] - Total operating expenses for Q2 2025 were $77,989 million, up from $73,920 million in Q1 2025, a rise of 5.6%[49] - The company experienced a 6.7% increase in operating expenses compared to 2024, mainly due to higher stock-based compensation and increased headcount[23] Taxation - The effective income tax rate for Q2 2025 was 22.3%, resulting in an income tax expense of $7.1 million, differing from the federal statutory rate of 21.0% due to state and local taxes[23] - The adjusted effective income tax rate for 2025 was 23.5%[23] - Adjusted effective income tax rate for Q2 2025 was 23.5%, slightly lower than 25.6% in Q1 2025, indicating improved tax efficiency[49] Strategic Initiatives - Acquisition of Ceres Partners, expected to raise at least $750 million by 2030 and manage roughly $10 billion in farmland assets over the next decade[10] - The company is pursuing the acquisition of Ceres Partners, LLC, with expected strategic benefits and potential earnings accretion[50] - WisdomTree continues to innovate with next-generation digital products and services, including tokenized real-world assets and a blockchain-native digital wallet[24] - The company aims to enhance its digital assets and blockchain-enabled financial services, including WisdomTree Prime® and WisdomTree Connect™[51] Market Trends and Risks - Anticipated trends in global markets and ETPs may influence inflows and outflows, impacting overall performance[51] - A significant portion of revenues is derived from a limited number of products, making operating results sensitive to investor sentiment and market performance[51] - The company faces risks related to international operations and the expansion of digital asset offerings, which may increase operational and regulatory challenges[52] - The company is exposed to currency exchange rate risks due to a substantial portion of AUM being held in products linked to developed markets[51] Financial Position - Total current liabilities increased to $243,853,000 as of June 30, 2025, compared to $109,197,000 at December 31, 2024, indicating a significant rise[34] - Retained earnings grew to $170,412,000 as of June 30, 2025, up from $129,823,000 at December 31, 2024, marking an increase of approximately 31.2%[34] - Total assets increased to $1,066,877,000 as of June 30, 2025, up from $1,033,540,000 at December 31, 2024, representing a growth of approximately 3.3%[34] Cash Flow - Net cash provided by operating activities increased to $45,176,000, up from $31,172,000 year-over-year, reflecting a growth of 45%[36] - Total cash, cash equivalents, and restricted cash at the end of the period was $193,673,000, up from $132,459,000, representing a 46% increase[36] - Net cash used in investing activities was $16,712,000, compared to $9,699,000 in the prior year, showing a 72% increase in cash outflow[36] - Common stock repurchased amounted to $12,714,000, an increase of 63% from $7,820,000 in the previous year[36] Other Financial Metrics - Other gains and losses for Q2 2025 included a net gain of $0.6 million, with significant contributions from financial instruments and investments, offset by foreign currency remeasurement losses[23] - The company reported a loss of $11,375,000 due to the repurchase of Series A Non-Voting Convertible Preferred Stock, impacting the earnings per share calculation[27] - The company incurred acquisition-related costs of $1,967 million in Q2 2025, which were deducted from total operating expenses[49] - The company reported gains on financial instruments owned at fair value of $(844,000), compared to $(1,772,000) in the previous year, indicating improved performance in this area[36] Forward-Looking Statements - Forward-looking statements are subject to change based on future events and developments, with no current intention to update them unless required by law[53]

Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - The industry and market are increasingly focusing on multi - asset ETFs as an innovative product offering one - stop asset allocation solutions. The report explores the development of US multi - asset ETFs to provide insights for domestic market innovation [2][11]. - US multi - asset ETFs have shown significant growth in recent years, with distinct characteristics such as strong head - effects in scale, rapid development of actively managed products, and extensive application of FOF - type products [2][20][31]. - The development of US multi - asset ETFs offers important lessons for the domestic market, including deepening multi - asset index development, diversifying allocation strategies, and broadening underlying asset investment tools [5]. 3. Summary by Directory 3.1 Two Action Plans Mentioned, Multi - asset ETFs Are Approaching - The "Public Offering Plan" emphasizes increasing the creation of asset - allocation products to meet the needs of investors with different risk preferences and promote the coordinated development of equity and fixed - income investments [8]. - The "Index Plan" proposes researching and launching innovative index products such as multi - asset ETFs and expanding the underlying asset categories of ETFs. Recent releases of multi - asset indices indicate growing market attention [10][11]. 3.2 Analysis of the Development History and Current Situation of US Multi - asset ETFs - In 2005, BlackRock issued the world's first multi - asset ETF in Canada. In 2006, Invesco launched the first US multi - asset ETF. After the 2008 financial crisis, multi - asset ETFs evolved rapidly [13][14]. - As of March 31, 2025, there are 181 multi - asset ETFs in the US market, with a total scale of $36 billion, ranking first globally. However, their scale accounts for only 0.35% of all US ETFs, indicating significant growth potential [18]. - The top three fund managers in terms of management scale are BlackRock, Pacer Advisors, and First Trust Portfolios, with a combined scale ratio of 45.35%. The top ten multi - asset ETFs in terms of fund scale account for 51.26% of the total scale [22][25]. - Actively managed multi - asset ETFs have developed rapidly. As of March 31, 2025, 146 out of 181 multi - asset ETFs are actively managed, accounting for 80.66%. Their issuance has increased explosively since 2021 [31]. - FOF - type products are widely used in US multi - asset ETFs. As of March 31, 2025, 73 out of 181 multi - asset ETFs are marked as FOF - type, accounting for nearly 40%, with a fund scale of $13.041 billion, about 36% of the total [34]. - The expense ratios of US multi - asset ETFs vary significantly. The average expense ratio of all 181 multi - asset ETFs is 0.80%, with actively managed and passively managed products having average expense ratios of 0.83% and 0.69% respectively. The expense ratio has generally remained low since 2016 [5][40]. 3.3 Exploration of the Strategy Classification of US Multi - asset ETFs - **Core Allocation Type**: This is the most common strategy type, further divided into target - risk, macro - strategy, and subjective - allocation subtypes. Target - risk type aims to meet pre - designed risk metrics, with 28 products and a scale of $8.176 billion. Macro - strategy type adjusts asset allocation based on macro - economic analysis, with 12 products and a scale of $0.937 billion. Subjective - allocation type gives investment managers high freedom, with 57 products and a scale of $10.402 billion [44][47][51]. - **Trend - Following Type**: These ETFs use momentum factors or trend - following models for asset allocation. As of March 31, 2025, there are 26 products with a scale of $7.193 billion, accounting for about 20% of the total [54][55]. - **Target - Dividend Type**: These ETFs focus on interest (dividend) income, with 22 products and a scale of $6.384 billion. The average historical dividend rate of 17 products issued before 2024 is 7.20%, much higher than other types [58][63]. - **Option - Strategy Type**: These ETFs add option - based derivatives to underlying assets to change the risk - return characteristics. As of March 31, 2025, there are 36 products with a scale of $2.907 billion, accounting for 8.08% of the total [63][64]. 3.4 Suggestions and Insights - **Investor Suggestions**: Different types of investors can choose corresponding multi - asset ETFs. For example, risk - sensitive investors can choose target - risk type; policy - sensitive investors can choose macro - strategy type; investors seeking stable cash flow can choose target - dividend type; those preferring quantitative strategies can choose trend - following type; and investors interested in alternative strategies can choose option - strategy type [68][69][70]. - **Insights for the Domestic Market**: The domestic market should prioritize using existing multi - asset indices as tracking targets, deepen the development of multi - asset indices, focus on stable strategies and diversify allocation strategies, and broaden underlying asset investment tools to promote the development of multi - asset ETFs [72][73][75].

Core Viewpoint - WisdomTree, Inc. is experiencing solid improvements in earnings estimates, which may lead to continued short-term price momentum for the stock [1][2] Estimate Revisions - Analysts show growing optimism regarding WisdomTree's earnings prospects, reflected in upward revisions of earnings estimates [2] - The current-quarter earnings estimate is $0.18 per share, representing a +12.5% change from the previous year, with a 14.81% increase in the Zacks Consensus Estimate over the last 30 days [6] - For the full year, the earnings estimate is $0.75 per share, indicating a +19.1% change from the year-ago number, with an 8.13% increase in the consensus estimate due to three upward revisions [7][8] Zacks Rank - WisdomTree has earned a Zacks Rank 2 (Buy), indicating promising estimate revisions that suggest potential outperformance compared to the S&P 500 [9] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the market [9] Stock Performance - WisdomTree shares have increased by 25.1% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [10]