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Related Party Transactions
 12 Months Ended
Dec. 31, 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:

  

December 31,

  

2024

 

2023

Receivable from WTT  $24,672   $21,226 
Receivable from ManJer Issuers   5,155    4,411 
Receivable from WMAI and WTICAV   5,132    2,874 
Total  $34,959   $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:

 

  

Years Ended December 31,

  

2024

 

2023

 

2022

          
Advisory services provided to WTT  $278,230   $218,834   $183,409 
Advisory services provided to ManJer Issuers   94,854    98,800    96,606 
Advisory services provided to WMAI and WTICAV   22,278    15,593    13,617 
Total  $395,362   $333,227   $293,632 

Pursuant to a license agreement between WisdomTree, Inc. (“WTI”) and WML to provide indices for a number of the sub-funds of WTICAV, WTI earned revenue amounting to €1,867 ($2,010), €1,044 ($1,128) and €642 ($671) for the years ended December 31, 2024, 2023 and 2022, respectively, which has been eliminated in consolidation. No other revenue was earned by WTI from providing indices for use in the European Union during 2024, 2023 or 2022.

Investments in WisdomTree Products

The Company also has investments in certain WisdomTree products of $89,822 and $52,566 at December 31, 2024 and 2023, respectively. This includes $20,866 and $18,308, respectively, of seed investments in certain consolidated affiliated Digital Funds advised by WT Digital Management, referred to herein as “other assets–seed capital.” The Company also has invested an additional $6,050 in the WisdomTree Government Money Market Digital Fund at December 31, 2024.

Net unrealized and realized gains and losses related to trading WisdomTree products during the years ended December 31, 2024, 2023 and 2022 were $1,232, $1,294 and ($107), respectively, which are recorded in other gains/(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.