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Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Measurements [Abstract]  
Fair Value Measurements

4. Fair Value Measurements

The fair value of financial instruments is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., “the exit price”) in an orderly transaction between market participants at the measurement date. ASC 820, Fair Value Measurement, establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs reflect assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the transparency of inputs as follows:

Level 1 – Quoted prices for identical instruments in active markets.

Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 – Instruments whose significant drivers are unobservable.

The availability of observable inputs can vary from product to product and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by management in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The tables below summarize the categorization of the Company’s assets and liabilities measured at fair value. During the three months ended March 31, 2025 and 2024, there were no transfers between Levels 2 and 3.

   March 31, 2025
   Total  Level 1  Level 2  Level 3
Assets:            
Recurring fair value measurements:                    
Cash equivalents  $90,896   $90,896   $
—
   $
—
 
Financial instruments owned, at fair value:                    
ETFs   62,974    62,974    
—
    
—
 
Pass-through GSEs   6,704    
—
    6,704    
—
 
Other assets—seed capital (WisdomTree Digital Funds):                    
U.S. treasuries   5,647    
—
    5,647    
—
 
Equities   8,023    8,023    
—
    
—
 
Fixed income   1,946    1,025    921    
—
 
Other investments   755    
—
    
—
    755 
Total  $176,945   $162,918   $13,272   $755 
   December 31, 2024
   Total  Level 1  Level 2  Level 3
Assets:            
Recurring fair value measurements:                    
Cash equivalents  $48,336   $48,336   $
—
   $
—
 
Financial instruments owned, at fair value:                    
ETFs   62,907    62,907    
—
    
—
 
Pass-through GSEs   6,898    
—
    6,898    
—
 
Other assets—seed capital (WisdomTree Digital Funds):                    
U.S. treasuries   5,251    
—
    5,251    
 
 
Equities   8,478    8,478    
—
    
—
 
Fixed income   1,905    1,019    886    
—
 
Other investments   687    
—
    
—
    687 
Total  $134,462   $120,740   $13,035   $687 
                     
Non-recurring fair value measurements:                    
Fnality International Limited—Series B-1 Preference Shares(1)  $8,288   $
—
   $
—
   $8,288 

_____________________________

(1)Fair value determined on June 17, 2024. Not included above are prospective changes in value due to fluctuations in the British pound to U.S. dollar exchange rate.

Recurring Fair Value Measurements – Methodology

Cash Equivalents (Note 3) – These financial assets represent cash invested in highly liquid investments with original maturities of less than 90 days. These investments are valued at par, which approximates fair value, and are classified as Level 1 in the fair value hierarchy.

Financial instruments owned (Note 5) – Financial instruments owned are investments in ETFs, pass-through GSEs, equities and fixed income. ETFs and equities are generally traded in active, quoted and highly liquid markets and are therefore classified as Level 1 in the fair value hierarchy. Pricing of pass-through GSEs and fixed income includes consideration given to date of issuance, collateral characteristics and market assumptions related to yields, credit risk and timing of prepayments and may be classified as either Level 1 or Level 2.

Fair Value Measurements classified as Level 3 – The following table presents a reconciliation of beginning and ending balances of recurring fair value measurements classified as Level 3:

These instruments consist of the following:

   Three Months Ended
  

March 31,
2025

 

March 31,
2024

Other Investments:          
Beginning balance  $687   $
—
 
Net unrealized gains(1)   68    
—
 
Ending balance  $755   $
—
 
(1)Recorded in other losses and gains, net in the Consolidated Statements of Operations.