WisdomTree(US:WT)2021-04-30 19:01Financial Data and Key Metrics Changes - Assets under management (AUM) reached $69.5 billion, a 3% increase from the previous quarter, driven by positive inflows and market movement [6] - Revenues increased by 9% to $73 million due to higher average AUM from strong inflows [9] - Adjusted net income rose 36% to $12.5 million or $0.08 per share [9] - Operating margin expanded to 25.5% and gross margins increased to 78.7% [10] Business Line Data and Key Metrics Changes - The ex-state-owned strategy products generated $1.5 billion of inflows, while thematic products saw inflows of $648 million [6] - Thematic ETFs grew 20% to $2.6 billion in AUM [7] - The European-listed Bitcoin Fund attracted $36 million in inflows, doubling its size to just under $400 million in AUM [7] Market Data and Key Metrics Changes - Inflows in the U.S. have continued for 10 consecutive months, marking the best streak in six years [21] - The group run rate revenue based on current AUM levels is now at $300 million, up nearly 40% from the first quarter of last year [22] Company Strategy and Development Direction - The company is focused on accelerating momentum through targeted investments in growth areas, including digital assets and thematic products [13] - There is a strong emphasis on maintaining leadership in crypto ETPs and expanding into digital assets [13][24] - The company plans to launch additional products in thematics and growth equities, as well as enhance existing fixed income and commodities offerings [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued organic growth despite industry-driven gold outflows [15] - The company is optimistic about the future of digital assets and blockchain technology, viewing it as a significant opportunity for capital markets [28] - Management acknowledged the importance of trust in attracting investors to crypto assets and emphasized the efficiency of ETF structures [76] Other Important Information - The CFO, Amit Muni, will be leaving the company at the end of May after 13 years of service [32] - The company has filed for a blockchain-enabled digital short-term treasury fund, indicating a commitment to innovation in financial services [29] Q&A Session Summary Question: Timeline for US Bitcoin and tokenized gold product launches - Management expects to be among the first to receive regulatory approval for the US Bitcoin filing, with gold tokens anticipated later in the year [35][37] Question: Advantages of owning Bitcoin in an ETF wrapper - The ETF structure provides a safer and more accessible way for investors to gain exposure to Bitcoin compared to direct ownership [38][39] Question: Success of thematic products and client receptiveness - Thematic products have seen broad success across retail and adviser channels, with strong performance driving inflows [42][44] Question: Blockchain-enabled treasury fund and its benefits - The digital treasury fund will enhance the investing experience with features like peer-to-peer transfers and improved efficiency [48][49] Question: Demand for Bitcoin ETF in Europe - Initial profit-taking affected early demand, but management expects significant growth as institutional interest increases [50] Question: Progress on model portfolios - The model portfolio initiative is gaining traction, with expectations for more partnerships and deeper client relationships [54][58] Question: Competitive advantage in digital assets - The company believes its early investments and expertise in digital assets position it well against larger financial institutions [94][103]