WisdomTree, Inc. (WT): A Bull Case Theory

We came across a bullish thesis on WisdomTree, Inc. on Kroker Equity Research’s Substack. In this article, we will summarize the bulls’ thesis on WT. WisdomTree, Inc.’s share was trading at $13.60 as of August 12^th. WT’s trailing and forward P/E were 33.17 and 18.38, respectively according to Yahoo Finance.

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WisdomTree (WT) is a mid-sized global asset manager specializing in ETFs and ETPs, with a $126B AUM base diversified across equities, fixed income, commodities, alternatives, and crypto. Known for its “Modern Alpha” approach—combining alternative indexing with passive efficiency—the firm differentiates itself through innovation, launching first-to-market products like dividend- and earnings-weighted equity ETFs, currency-hedged strategies, and more recently, tokenized assets.

Financially, WisdomTree is scaling efficiently, with Q2 2025 revenues up 5% year-over-year to $112.6M, net income up 14% to $24.8M, operating margins above 30%, and record-high AUM driven by $3.5B quarterly net inflows. The company maintains strong gross margins (~81%), robust free cash flow generation, and a history of shareholder returns through dividends and buybacks, including a $150M repurchase authorization extended to 2028.

Beyond core ETFs, WisdomTree is an early mover in regulated digital finance via WisdomTree Prime and Connect, offering tokenized gold, money market funds, and other blockchain-enabled products. This expansion targets long-term opportunities in tokenization, although revenue impact remains nascent and execution risk is high. The company faces challenges from intense ETF fee competition, market-driven AUM volatility, smaller scale versus trillion-dollar peers, and activist shareholder pressure, notably from ETFS Capital, which has pushed for cost control, capital returns, and focus on core strengths.

Leverage from $520M in convertible notes adds potential dilution risk, though debt levels are manageable. Overall, WisdomTree’s combination of a differentiated product suite, global diversification, margin expansion, and optionality from digital assets positions it for long-term growth, while valuation could benefit from sustained inflows, operational discipline, and successful monetization of new initiatives.

Previously, we covered a bullish thesis on Brookfield Asset Management Ltd. (BAM) by Soren Peterson in February 2025, which highlighted its positioning to capitalize on AI-driven infrastructure growth, credit expansion, and strong capital-raising. The stock has appreciated by 3.24% since, as the thesis played out. Kroker Equity Research shares a similar view on WisdomTree, emphasizing ETF innovation and digital assets.