WisdomTree's Q3 Crypto Assets Under Management Falls 36%

New York-based asset manager WisdomTree's (WETF) crypto asset holdings fell 36% to $178 million as of Sept 30 from a year earlier, according to the company's latest earnings report, which was released on Friday.

WisdomTree held $265 million in cryptocurrencies at the end of the second quarter, but the assets depreciated by $87 million during the third quarter with the market downturn. The firm had $277 million in crypto holdings at the end of the third quarter last year.

Overall, WisdomTree had $70.9 billion in assets under management at the end of this year's third quarter.

During the past three months, major crypto assets like bitcoin (BTC), ether (ETH) and Solana's SOL have declined amid soaring inflation, and asset managers and venture capitalists involved in crypto have felt the squeeze, with prominent venture-capital firm Andreessen Horowitz's flagship crypto fund losing 40% of its value in the first half of this year.

Jarrett Lilien, WisdomTree's president and chief operating officer, however, remains unperturbed as he focuses on the use cases of blockchain technology.

"Our approach is to bring crypto mainstream and to bring mainstream exposures, like fixed income, equities and commodities, into the digital world through blockchain-enabled funds and tokenized exposures," he said in the earnings press release.

Shares of WisdomTree were recently up 1.9% in premarket trading.

UPDATE (Oct. 28, 13:05 UTC): Corrects comparative figure in headline and text.