ETFS Capital Calls for Leadership Change in WisdomTree, Board Responds
ETFS Capital is pushing for a shake-up in WisdomTree’s leadership, urging shareholders to vote against the re-election of certain directors.
In a statement provided to Cryptonews.com, ETFS Capital expressed concerns about the current board and management of WisdomTree, stating that significant changes are necessary to increase shareholder value.
ETFS is advocating against the strategic direction of WisdomTree, highlighting the company’s continued undervaluation as a result of the board’s decisions.
The statement criticized the board for not exploring potential strategic options, such as selling the business or making other substantial changes that could improve shareholder returns.
“We believe that WisdomTree’s core ETF business is undervalued,” the statement reads. “We estimate that the business is worth $2.1 to $3.0 billion for common stockholders, significantly more than the company’s current market value of $1.4 billion.”
ETFS also raised concerns about what it sees as a misguided focus on DeFi ventures, including WisdomTree Prime, which have not yielded significant financial returns. The group argues that these ventures have diverted resources from the core business, which could be more profitable with proper management.
Furthermore, ETFS expressed frustration with the composition and actions of the board, particularly the reappointment of long-serving directors who, in their view, support unsuccessful strategies.
“We urge stockholders to join us in voting against the re-election of Chairman Win Neuger, Director Anthony Bossone, and CEO and Director Jonathan Steinberg,” said ETFS.
In response to ETFS Capital’s criticisms, WisdomTree’s board has issued a letter to shareholders, outlining the significant progress made under the current leadership and highlighting a strong track record and improved governance.
“Disrupting the boardroom would hinder WisdomTree’s execution and growth trajectory,” the letter states. “Graham Tuckwell has unnecessarily wasted WisdomTree’s time and resources – enough is enough.”
The board emphasized the 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 a strategic and forward-looking initiative aimed at capitalizing on emerging market opportunities.
Contrary to ETFS’s claims, the board asserted that their initiatives are designed to enhance long-term shareholder value.
“We strongly urge stockholders to vote ‘FOR’ all highly qualified director nominees on the WHITE proxy card,” the letter concludes.
