ETFS Capital releases letter to fellow WisdomTree shareholders

ETFS Capital Limited, the largest combined owner of common stock, $0.01 par value, and Series A Non-Voting Convertible Preferred Stock of WisdomTree, with ownership of approximately 10.2% of the outstanding Common Stock, which together with its Series A Preferred Stock would represent approximately 18.3% of the Company’s outstanding Common Stock on an as-converted basis, today released a letter to its fellow WisdomTree shareholders, responding to a public letter from WisdomTree board of director’s to ETFS Capital’s Chairman, Graham Tuckwell. “For many years now WisdomTree has embarked on an ill-advised strategy of trying to transform the Company from an ETF business to a DeFi business, which has resulted in the core ETF business being poorly managed and all of its DeFi efforts ending in failure… As a result of this misguided ‘transformation’ strategy, WisdomTree lost focus on the core ETF business, which despite record AUM, suffers from poor profitability. Consequently, WisdomTree trades at a significant discount to its intrinsic value if it were a well-run pure-play ETF business. We believe the intrinsic value is $15.50 per share compared to the current market price of $9.00 per share… Fellow stockholders, over the past three years, we have attempted to address operational and governance failures through proxy campaigns. Unfortunately, the resulting change to WisdomTree’s Board has been insufficient to overcome the influence that management and long-tenured directors exert in maintaining the status quo. Instead, as a referendum on the Company’s failed diversification strategy and its refusal to unlock value through a strategic review process, we intend to Withhold our votes from members of the Board at the upcoming shareholder meeting. We invite other shareholders to do the same. It is time to send a clear and resounding message to the Board. Hire a reputable banker and evaluate all options to unlock value.”