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ETFS Capital Calls for Change in WisdomTree Leadership, Board Responds

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Hongji Feng

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Hongji Feng

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Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

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Last updated:

May 7, 2024

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ETFS Capital has called for changes in WisdomTree’s leadership, urging shareholders to vote against the re-election of certain directors.

In a statement shared with Cryptonews.com, ETFS Capital expressed concerns about WisdomTree’s current board and management, suggesting that significant changes are needed to increase shareholder value.

ETFS Advocates Voting Against WisdomTree Board

The statement opposed the strategic direction of WisdomTree, emphasizing the company’s persistent undervaluation due to its board’s decisions.

ETFS criticized the board for not exploring potential strategic options, including the sale of the business or other significant changes that could enhance shareholder returns.

“ETFS believes that WisdomTree trades at a significant discount to the intrinsic value of its core ETF business,” the statement reads. “

“WisdomTree’s ETF business, we believe, is worth $2.1 to $3.0 billion to common stockholders – significantly more than the Company’s current market value of $1.4 billion,” the statement reads.

The group pointed out what it sees as a misdirected focus on DeFi ventures, such as WisdomTree Prime, which have not yielded significant financial returns. ETFS argues that these ventures have diverted resources from core business, which could be more profitable with proper management.

Additionally, ETFS expressed frustration over the board’s composition and actions, particularly the reappointment of long-tenured directors who, in their view, support the continuation of unsuccessful strategies.

“We urge stockholders to join us in voting AGAINST the re-election of the Chairman Win Neuger, Director Anthony Bossone, and CEO and Director Jonathan Steinberg,” said ETFS.

Board Rebuts Opposition With Letter to Shareholders

WisdomTree’s board has responded to ETFS Capital’s criticisms

in a letter to shareholders, detailing the significant progress made under the existing leadership, pointing to a strong track record and robust governance improvements.

“Boardroom disruption would hinder WisdomTree’s execution and growth trajectory,” the letter reads. “Graham Tuckwell has unnecessarily wasted WisdomTree Time and resources – enough is enough.”

The board highlighted a record $107.2 billion in assets under management as of March 2024, demonstrating the growth and success of their core ETP business. They defended WisdomTree Prime as strategic and forward-looking, aimed at capitalizing on emerging market opportunities.

Contrary to ETFS’s claims, the board asserted that their initiatives are designed to enhance shareholder value in the long term.

“Strongly urges stockholders to vote “FOR” all highly qualified director nominees on WHITE proxy card,” the letter reads.