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Related Party Transactions
 6 Months Ended
Jun. 30, 2023
Related Party Transactions [Abstract]  
Related Party Transactions
16. 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, Digital Funds and WisdomTree UCITS ETFs. The Board of Trustees and Board of Directors (including certain officers of the Company) of the related parties are primarily responsible for overseeing the management and affairs of the entities for the benefit of their 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 Board of Trustees are required to initially and annually (after the first two years) approve the advisory agreements of the U.S. WisdomTree ETFs and the Digital Funds and these agreements may be terminated by the Board of Trustees 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:
 
 
  
June 30,

2023
 
  
December 31,

2022
 
Receivable from WTT
   
$
17,821
   
   
$
16,399
 
Receivable from ManJer Issuers
   
 
12,204
 
   
 
4,485
 
Receivable from WMAI and WTICAV
   
 
2,617
 
   
 
3,255
 
    
 
 
     
 
 
  
Total
   
$
          32,642
 
   
$
          24,139
 
    
 
 
     
 
 
  
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

June 30,
 
  
Six Months Ended

June 30,
 
 
  
2023
 
  
2022
 
  
2023
 
  
2022
 
Advisory services provided to WTT
   
$
52,452
 
   
$
45,670
 
   
$
101,939
 
   
$
91,740
 
Advisory services provided to ManJer
Issuers
   
 
25,794
 
   
 
26,282
 
   
 
50,634
 
   
 
53,187
 
Advisory services provided to WMAI
and WTICAV
   
 
3,758
 
   
 
3,634
 
   
 
7,068
 
   
 
7,176
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Total
   
$
        82,004
 
   
$
        75,586
 
   
$
        159,641
 
   
$
        152,103
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Investments in WisdomTree Products
The
 Company also has investments in certain WisdomTree products of approximately $38,451 and $25,283 at June 30, 2023 and December 31, 2022, respectively. This includes $12,876 and $1,765, respectively, of investments in certain consolidated affiliated Digital Funds advised by WT Digital Management, referred to herein as “other assets–seed capital.” Net unrealized and realized gains/(losses) related to trading WisdomTree products were $419 and $841, respectively, during the three and six months ended June 30, 2023 and ($313) and ($1,119), respectively, during the comparable periods in 2022. Such gains and losses are recorded in other gains and losses, net on the Consolidated Statements of Operations.
Deferred Consideration—Gold Payments – Termination
O
n May 10, 2023, the Company terminated its contractual gold payments obligation to ETFS Capital, which included the payment of $45,634 to an entity controlled by GT, a stockholder of the Company. See Note 9 for additional information.