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Related Party Transactions
 9 Months Ended
Sep. 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, WisdomTree Digital Funds and WisdomTree UCITS ETFs. The Boards of Trustees and Boards 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 respective 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 such 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:

  

September 30,

2023

 

December 31,

2022

Receivable from WTT  $19,123   $16,399 
Receivable from ManJer Issuers   9,024    4,485 
Receivable from WMAI and WTICAV   4,168    3,255 
Total  $32,315   $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

September 30,

 

Nine Months Ended

September 30,

   2023  2022  2023  2022
Advisory services provided to WTT  $57,656   $45,112   $159,595   $136,852 
Advisory services provided to ManJer Issuers   24,703    22,055    75,337    75,242 
Advisory services provided to WMAI and WTICAV   4,239    3,449    11,307    10,625 
Total  $86,598   $70,616   $246,239   $222,719 

Investments in WisdomTree Products

The Company also has investments in certain WisdomTree products of approximately $54,259 and $25,283 at September 30, 2023 and December 31, 2022, respectively. This includes $12,149 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 (losses)/gains related to trading WisdomTree products were ($591) and $250, respectively, during the three and nine months ended September 30, 2023 and ($489) and ($1,608), 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

On 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.