A new asset class:

Investing in the digital asset ecosystem

 Technological innovations tend to spread through boom-and-bust cycles

Source: WisdomTree, Bloomberg. Data from July 2010 to June 2022. Historical performance is not an indication of future performance and any investments may go down in value

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 2
 A new asset class: Investing in the digital asset ecosystem

1. The many opportunities of a nascent asset class

Blockchain technology supports many megatrends such as decentralised
finance (DeFi), Web 3.0, the metaverse and as such can be a source of
exponential growth.

2. Mapping a nascent and evolving investment universe

Understand the ecosystem, the different use cases and the economics
driving the investment cases

3. How should investors access digital assets?

How to invest in Digital Assets when the infrastructure they are built on is
so different from traditional assets

4. Digital assets’ rightful place in an asset allocation

What are the advantages of Digital Assets in a strategic asset allocation,
and why even returns as low as 6% annualised for the asset class could
warrant a 1% exposure?

Source: WisdomTree.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 3
The many opportunities of a nascent asset class
 The rate of new technology adoption is increasing in an increasingly digital and globalised world

Source: Hannah Ritchie and Max Roser (2017) - "Technology Adoption". Published online at OurWorldInData.org

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 5
 Digital assets, in their various forms, are now well beyond early adoption

Crypto Assets Are Still Early On the Adoption Curve

100%

90%

80% Innovators Early Adopters Early Majority Late Majority Laggards

70%
Marke t Pe ne t rat io n

60%

50%

40%
Bitcoin
30%
Ethereum
20%

10% NFT?
DeFi?
0%
Time
Source: WisdomTree. NFT stands for Non-Fungible Tokens. DeFi stands for Decentralised Finance.
You cannot invest directly in an index. Historical performance is not an indication of future performance and any investments may go down in value.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 6
 Different terms are used to describe this technological change

‘Crypto’ or ‘digital assets’: open source protocols used to ‘movement’ of assets

Who is able to capture consumer or producer surplus in a digital world?

‘Web3’: a decentralised alternative to ‘Big Tech’ data monopolies that emerged from 2000-
2020
Who ‘owns’ data and who makes the money off it?

‘Metaverse’: the blurring of the lines between physical and virtual realities
How can one ‘move’ one’s assets across environments – and who owns these environments?

For more information see: https://www.wisdomtree.eu/en-gb/blog/2022-01-25/will-the-future-be-web3-metaverse-or-open-source

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 7
 Over time distributed databases (i.e. blockchains) are disrupting different industries

Source: WisdomTree. 2022

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 8
 There has never been more venture capital invested in this space

$25.1bn

$5.8bn
$3.0bn $3.1bn
$0.6bn $0.9bn $1.1bn

2015 2016 2017 2018 2019 2020 2021

Source: The Block

Historical performance is not an indication of future performance and any investments may go down in value

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 9
 There are various ways to gain exposure to this technological shift
Digital Assets
• Pure Play: Cryptocurrencies, fungible
or non-fungible tokens (NFTs).
• Very different investment cases across
the different categories of digital assets
• Similar to early-stage venture capital
investment, except marked to market
every single day
• High volatility in the short to medium
term, which is an expression of
uncertainty of future value
FOR FINANCIAL PROFESSIONAL USE ONLY
Blockchain Equities
+ Fractional ownership in a company
that uses or develops distributed
ledger technology (‘blockchains’)
+ Grants a share of the company’s profit
in the event it pays a dividend
+ By definition, companies are late-stage
as they have gone to IPO to tap
investment capital
+ Returns influenced by both the volatility
of the underlying digital assets but also
management decisions
‘Picks and Shovels’
+ Equities or raw commodities that
underpin the digital transformation
+ Use case agnostic – it does not matter
how people use digital technologies…
only that they are using them
+ Returns are predicated on competitive
forces, particularly driving down cost of
production and distribution
A new asset class: investing in the digital asset ecosystem 10
 Each type of exposure comes with very different risk/return profiles

MSCI ACWI IMI Blockchain MVIS CryptoCompare Digital

MSCI ACWI IMI
Economy Assets 100
Annualised Return 10.5% 25.8% 113.0%
Volatility 15.4% 26.1% 110.8%
Sharpe 0.61 0.95 1.01
Max Drawdown -22.4% -32.4% -83.3%
Beta 1.00 1.36 1.95
Correlation 1.00 0.80 0.27

MSCI ACWI IMI Blockchain MVIS CryptoCompare

MSCI ACWI IMI
Economy Digital Assets 100

MSCI ACWI IMI 1.00 0.80 0.27

MSCI ACWI IMI Blockchain Economy 0.80 1.00 0.20
MVIS CryptoCompare Digital Assets 100 0.27* 0.20* 1.00

Source: WisdomTree, Bloomberg. 30 November 2016 to 30 April 2022. On monthly USD returns. Blockchain Equities are proxied by the MSCI ACWI IMI Blockchain Economy Index. Digital Assets are proxied by the MVIS
CryptoCompare Digital Assets 100. You cannot invest directly in an index. Historical performance is not an indication of future performance and any investment may go down in value.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 11
 Takeaways

New technologies spread over time; digital assets have spread rapidly given that they are open
source software riding the internet and cell phones

Distributed ledgers (‘blockchains’) are finding use cases beyond payments; it is not obvious how
they might be used in the future

An allocation to digital assets has a very different risk/return profile compared to blockchain
equities or a ‘picks and shovels’ approach

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 12
Mapping a nascent and evolving investment universe
 Until 2017, Bitcoin was overwhelmingly the dominant portion of the ecosystem

Bitcoin Dominance as a % of Total Digital Asset Market Capitalisation, 2014-2022

Source: Tradingview. Historical performance is not an indication of future performance and any investment may go down in value.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 14
 Digital Assets: It is not all about Bitcoin

Source: WisdomTree. As of 15th June 2022. In USD.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 15
 A diversified ecosystem characterised by trial-and-error

Bitcoin & Cryptocurrencies

Ethereum & Smart Contracts
Litecoin and other ‘altcoins’
including Bitcoin Forks Launch of DeFi & NFTs
(Diamond, Black, etc.) Ethereum
Open-source code ERC720 for non- Layer 1 Alternatives
for Bitcoin released fungible tokens
Tether, the US (NFTs) is released
dollar pegged Bitcoin Cash EIP1559
(BCH) is released aims to Layer 1
‘stablecoin’, is
to address scaling address some alternatives, SOL
first issued Binance token
issue Ethereum ADA AVAX
(BNB) ICO scaling issues FTM, reach
ERC20
ERC20 Decentralised collective
creates token exchange Binance $300mn in
standard Uniswap Smart market
laying the released Chain capitalisation
Dogecoin, way for the
intended as a goes live
ICO boom
joke, is released

2009 2011 2013 2015 2017 2019 2021

Source: WisdomTree.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 16
 The WisdomTree’s Digital Assets Taxonomy

+ The digital asset ecosystem has grown and

diversified, particularly since 2017
+ The WisdomTree Digital Asset Taxonomy
subdivides the ecosystem by use case
+ The Taxonomy will evolve over time as the
digital asset ecosystem evolves
+ Each segment of the ecosystem has a very
different risk/reward ratio, which is a
function of how new/experimental the
segment is
+ One can now think about how to calibrate
one’s digital asset allocation – with very
different outcomes

Source: WisdomTree.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 17
 For instance, ‘smart contract platforms’ outperformed BTC during 2020-21

Market Cap
Taxonomy Level 1
Percent
Layer-1 payments 47.6%
Layer-1 smart contracts 33.3%
Stablecoin 9.4%
DeFi 1.5%
NFT 0.4%
Others 7.8%

Source: WisdomTree, Messari as of 25/4/2022

You cannot invest directly in an index. Historical performance is not an indication of future performance and any investments may go down in value.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 18
 It is not easy to ‘pick winners’ in the digital asset space

Source: WisdomTree, Messari as of 25/4/2022

You cannot invest directly in an index. Historical performance is not an indication of future performance and any investments may go down in value.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 19
 Takeaways

The digital asset ecosystem is more diverse than ever; it is more than just Bitcoin now

The WisdomTree Digital Asset Taxonomy reflects the evolving nature of the ecosystem

Allocations across different segments of the ecosystem carry different risk/return ratios; one needs
to think about what constitutes one’s allocation in a way that one wouldn’t have done 5 years ago

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 20
How should investors access digital assets?
 Institutional investors can access Digital Assets through many tools, can’t they ?

Investment options after exchange listing

Physical exposure
• Direct holding of digital assets
• Personal wallets
• Account on centralised crypto exchange
Venture Capital Exchange listing • Hot wallet with custodian
Participate in all series of Coins are listed on • Separately managed account
funding stages exchange • Cold wallet with custodian
• Wrapper solution physically-backed funds/ETPs
• Closed-end funds
Coins are listed on major • Open-end exchange traded products
ICO
crypto exchanges,
Participate pre/during
investors can access with Synthetic exposure
initial coin offering (ICO)
deep liquidity • Direct holding of futures/swaps
• Future contracts on crypto exchanges
• Regulated future contracts on traditional exchanges
• Wrapper solution backed by futures
• Futures-backed ETPs
• Structured products
Source: WisdomTree. ETP (Exchange Traded Product).

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 22
 Synthetic exposure in Crypto Exchanges

+ Physically-settled futures (monthly/quarterly contracts)

+ Cash-settled futures (monthly/quarterly contracts) + 


Capital efficient (margin trading, leverage)
Ability to take both long/short positions
Risk management tool
+ Perpetual swaps

- 


Performance drag / Rolling contracts often
generate negative yield (‘contango bleed’)
Hot wallets are not secure
 High funding rates - cost to borrow
 Does not plug easily into existing trading systems
 Limited access to liquidity across exchanges

Source: CoinGlass, WisdomTree. February 2020 to June 2022. Historical performance is not an indication of future performance and any investment may go down in value.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 23
 Synthetic exposure in traditional financial system

+ Future contracts on traditional exchanges

+ Future contract-backed Exchange Traded + 


Plugs in easily in existing trading / investment
platforms
One-stop solution for accessing digital assets
Products/Structured Products  Listed on regulated exchanges & existing
brokerage platform
 Secondary market liquidity

- 


Performance drag / Rolling contracts often
generate negative yield (‘contango bleed’)
Limited coin choice: Bitcoin and Ethereum
 Can only trade during market hours

Source: Bloomberg; WisdomTree,. From 8 February 2018 to 15 June 2022. Historical performance is not an indication of future performance and any investments may go down in value.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 24
 Physical Exposure through direct ownership

+ Personal wallets
+ Accounts on centralised crypto exchange + 


Direct exposure
A wide range of coins offered
Sophisticated strategy possible
+ Hot wallets with custodian
+ Separately Managed Account
+ Cold wallet with Custodian

- 

Hot wallets are not secure
Setting up a cold wallet at custodian is tedious and
time-consuming
 Does not plug easily into existing trading systems
 Limited access to liquidity across exchanges

Source: CoinGlass, WisdomTree. February 2020 to June 2022. Historical performance is not an indication of future performance and any investment may go down in value.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 25
 Physical Exposure through close-ended/investment funds

+ Close-ended funds and investment trusts

+ 


Plugs in easily in existing trading / investment
platforms
One-stop solution for accessing crypto exposure
 Active management
 Sophisticated strategy possible

- 


High product management cost
Bad tracking due to discount/premium to NAV
Liquidity risk
 Non-transparent fund holdings
 Can only trade during market hours

Source: CoinGlass, WisdomTree. February 2020 to June 2022. Historical performance is not an indication of future performance and any investment may go down in value.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 26
 Physical exposure through physically-backed Exchange Traded Products (ETPs)

+ Listed wrapped solutions: Physically-backed exchange-

traded products + 


Plugs in easily in existing trading / investment
platforms
One-stop solution for accessing digital assets
 Listed on regulated exchanges & existing
brokerage platform
 Secondary market liquidity
 Storage in cold wallet

- 


Limited but rapidly expanding coin choice: Bitcoin
and Ethereum
Can only trade during market hours

Source: WisdomTree. As of 31st May 2022. Historical performance is not an indication of future performance and any investment may go down in value.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 27
 Digital Assets ETPs are growing very fast

Source: Bloomberg; WisdomTree, April 2021 to April 2022. Historical performance is not an indication of future performance and any investments may go down in value.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 28
 Selecting the right Digital Asset ETP for your needs

Security & Custody

Cybersecurity is a key consideration for Digital Assets - Physically Backed/Cold Wallet

Issuer & Product Structure

Institutional grade digital assets Investments from an institutional focused asset manager

Cost of Holding
In physically backed ETPs, the only costs is the TER

Lending and Staking

Lending can be risky but Staking can create yield

Trading
Robust Primary and Secondary trading is very important

Operational considerations for digital asset basket products

Basket Construction and Operational implementation have a large impact on performance
Source: WisdomTree. TER (Annual total expense ratio)

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 29
 Takeaways

Most access tools to Digital Assets are not “institutional-grade”

Physically-backed Exchange Traded Products’ success is a testimony to the many guarantees they
offer to investors

Digital Asset ETP’s Due Diligence should concentrate on asset security (custody, lending),
tracking efficiency (Cost, staking) and operational robustness

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 30
Digital assets’ rightful place in an asset allocation
 What allocation to Digital Assets for passive investors or investors that “don’t know enough”

Source: Bloomberg, WisdomTree. As of 31st May 2022. Market caps are shown in US Dollars billion. You cannot invest directly in an index.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 32
 Digital assets, an asset class that stands out

Asymmetric payoff
 Seen as an alternative investment

Low correlation with other asset classes and between digital Assets
 Used as a portfolio diversifier

Strong potential for exponential growth

 Seen as a thematic investment

Source: WisdomTree. 2022

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 33
 The advantages of asymmetry and positive skewness

Since December 2014

+ Equities had 2 very months where the return was lower than two times their volatility and 2 months where the
return was higher than two times their volatility
+ Digital assets had 0 of those very negative months but 4 very positive months

Digital Assets Bitcoin S&P 500

Skew 1.41 0.57 -0.40

Kurtosis 3.83 0.16 1.12

Source: Bloomberg, WisdomTree. From 31 December 2014 to 31 May 2022. Calculated in USD on monthly returns. Digital Assets are proxied by the MVIS CryptoCompare Digital Assets 100. You cannot invest directly in an index.
Historical performance is not an indication of future performance and any investment may go down in value.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 34
 Historically low correlation with Traditional Asset Classes

60 ACWI / 40 Multiverse

Equity Market Neutral

Convertible Arbitrage
Global Aggregate

Merger Arbitrage

Absolute Return
Systematic CTA
Infrastructure

Global REITS

Event Driven
Commodity
Bloomberg

MSCI ACWI

Macro CTA
Multiverse

Distressed
Global HF

Equity HF

Credit HF
Gold

TIPS
Digital Assets
Legend
60 ACWI / 40 Multiverse
1.0
Gold
0.9
Bloomberg Commodity
0.8
Infrastructure
0.7
Global REITS
0.6
MSCI ACWI
0.5
Multiverse
0.4
Global Aggregate
0.3
TIPS
Global HF 0.2
Equity HF 0.1
Macro CTA -
Equity Market Neutral
Merger Arbitrage
Systematic CTA
Source: Bloomberg, WisdomTree. From 31 December 2014 to 31st May 2022. Calculated in USD on monthly returns. All Country World Index (ACWI), Real Estate Investment Trust (REIT), Treasury inflation-protected securities (TIPS), Hedge
Absolute Return
Fund (HF), Commodity trading advisor (CTA). You cannot invest directly in an index. Historical performance is not an indication of future performance and any investment may go down in value.
Event Driven
FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 35
Credit HF
 Correlation between Digital Assets and other assets is NOT more unstable

Source: Bloomberg, WisdomTree. From 31 December 2014 to 31 May 2022. Calculated in USD on daily returns. Fixed Income is represented but the Bloomberg US Aggregate Index. Equities are represented by the S&P 500 net TR Index. You
cannot invest directly in an index. Historical performance is not an indication of future performance and any investment may go down in value.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 36
 Historically low correlation between Digital Assets

Bitcoin Cash
Avalanche
Ethereum

Chainlink
Polkadot
Cardano

Protocol

Polygon

Litecoin

Cosmos
Solana

TRON
NEAR
XRP
Bitcoin Legend
Ethereum 1.00
XRP 0.95
0.90
Solana
0.85
Cardano 0.80
Avalanche 0.75
Polkadot 0.70
0.65
NEAR Protocol
0.60
Polygon 0.55
Litecoin 0.50
Cosmos
Chainlink
Bitcoin Cash
Source: Messari, WisdomTree. From 202216 June 2021 to 16 June 2022. Calculated in USD on daily returns. You cannot invest directly in an index. Historical performance is not an indication of future performance and any
investment may go down in value.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 37
 Portfolio Simulation: Adding Bitcoin to a Broad Global 60/40 Portfolio

Portfolio characteristics Breakdown

+ Weighting Scheme
Constant Mix
+ Start date
31 December 2014
+ Rebalance Frequency
Monthly
+ Currency
Euro
+ Allocating to Digital Assets
The simulation will show 5 example portfolios, for which 1 to 5% have been
switched from the equity bucket to bitcoin

Source: WisdomTree. You cannot invest directly in an index.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 38
 Strategic investment - Even small allocations improved the Risk/Return profile

Annualised Return Volatility Sharpe Ratio Max Drawdown Information Ratio

Base Portfolio 6.2% 8.7% 0.75 -22.2%
1% Digital Asset Portfolio 7.2% 8.8% 0.85 -22.3% 1.22
3% Digital Asset Portfolio 9.1% 9.3% 1.00 -22.5% 1.22
5% Digital Asset Portfolio 11.0% 10.2% 1.10 -22.6% 1.23
MSCI ACWI 10.0% 13.6% 0.76 -33.4%
Bloomberg EUR Agg 0.2% 3.9% 0.14 -12.9%
Digital Assets 85.5% 97.0% 0.88 -87.0%
Source: Bloomberg, WisdomTree. From 31 December 2014 to 31 May 2022. Calculated in EUR on daily returns. You cannot invest directly in an index. Historical performance is not an indication of future performance and any
investment may go down in value. For illustrative purpose only.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 39
 Underperformance is contained thanks to systematic rebalancings

Source: Bloomberg, WisdomTree. From 31 December 2014 to 31 May 2022. Calculated in EUR on daily returns. You cannot invest directly in an index. Historical performance is not an indication of future performance and any
investment may go down in value. For illustrative purpose only.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 40
 Portfolio Simulation: Momentum in Digital Assets

Portfolio characteristics
+ Weighting Scheme
Equal weight portfolio of Digital Assets based on momentum signals
2 week look back, 2 week holding strategies
+ Start date
24 December 2016
+ Rebalance Frequency
Every Week
+ Currency
US dollar
+ Allocating to Digital Assets
100% allocation

Source: WisdomTree. You cannot invest directly in an index.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 41
 Tactical Investment – Using Momentum to rotate inside the Digital Asset Ecosystem

Annualised Return Volatility Sharpe Ratio Max Drawdown Information Ratio

Illustrative Digital Asset Momentum Portfolio 374.1% 135.9% 2.75 -90.9% 2.49
Digital Assets qual-weight Portfolio 264.9% 122.9% 2.15 -91.0%

Source: Messari, WisdomTree. From 24 December 2016 to 11 June 2022. Calculated in USD on weekly returns. Returns are windsorised at 0.05%. You cannot invest directly in an index. Historical performance is not an indication of
future performance and any investment may go down in value.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 42
 Portfolio Simulation: Digital assets in the alternative bucket

Portfolio characteristics Breakdown

+ Weighting Scheme
Equal Risk Contribution in Alternatives (based on 18 months covariance
matrix)
+ Start date
31 December 2016
+ Rebalance Frequency
Quarterly
+ Currency
US dollar
+ Allocating to Digital Assets
Depends on Covariance matrix between alternative investments

Source: WisdomTree. You cannot invest directly in an index.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 43
 Equal Risk contribution in the Alternative sleeve – 3% in Digital Assets

+ Equal weight portfolio of Digital Assets based on momentum signals

+ 2 week look back, 2 week holding strategies

Source: Bloomberg, WisdomTree. From 31 December 2014 to 31 May 2022. Calculated in EUR on daily returns. REITS stands for Real Estate Investment Trusts and HF stands for Hedge Funds. You cannot invest directly in an index.
Historical performance is not an indication of future performance and any investment may go down in value. For illustrative purpose only.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 44
 Portfolio Simulation: Long Term Capital Markets Assumptions

Portfolio characteristics Breakdown

+ Weighting Scheme
Constant Mix
+ Start date
Looking forward based on 2022 JP Morgan Long Term Capital Market
Assumptions
+ Currency
US dollar
+ Allocating to Digital Assets
1% invested in Digital Asset

Source: WisdomTree. You cannot invest directly in an index.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 45
 As long as digital assets return 6% per annum, they could improve the Sharpe ratio of a multi asset
portfolio

Source: Bloomberg, WisdomTree. From 31 December 2014 to 31 May 2022 2022. Calculated in EUR on monthly returns. You cannot invest directly in an index. Historical performance is not an indication of future performance and any
investment may go down in value. For illustrative purpose only.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 46
 Takeaways

Not investing in Digital Assets is a very active investment decision

Digital Assets exhibit asymmetrical returns, a potential for exponential growth and large
diversification capabilities

Small allocations, with systematic rebalancings, to Digital Assets in a multi-asset portfolio can
improve the risk-return profile.

As long as digital assets return 6% per annum, they could improve the Sharpe ratio of a multi asset
portfolio

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 47
 WisdomTree’s Philosophy for Digital Assets: Institutional grade exposure to cryptocurrencies

+ WisdomTree is a recognised world leader at securing physical metals underlying ETPs

and have used the same structure to protect the underlying physical Crypto holdings.
+ The ETPs are physically backed, professionally secured in cold storage.
+ The products utilise institutional cryptocurrency custody solutions.
+ Crypto ETPs to provide dual custody – Coinbase and Swissquote.
+ Competitive management fee
Resources & Insights

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 48
 WisdomTree’s Philosophy for Digital Assets: Institutional grade exposure to cryptocurrencies

WISDOMTREE
CRYPTO ASSET
EXCHANGE
TRADED
PRODUCTS

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 49
 Disclaimer (1/4)
IMPORTANT INFORMATION

Marketing communications issued in the European Economic Area (“EEA”): This document has been issued and approved by WisdomTree Ireland Limited, which is authorised and regulated by the Central
Bank of Ireland.

Marketing communications issued in jurisdictions outside of the EEA: This document has been issued and approved by WisdomTree UK Limited, which is authorised and regulated by the United Kingdom
Financial Conduct Authority.

WisdomTree Ireland Limited and WisdomTree UK Limited are each referred to as “WisdomTree” (as applicable). Our Conflicts of Interest Policy and Inventory are available on request.

For professional clients only. Past performance is not a reliable indicator of future performance. Any historical performance included in this document may be based on back testing. Back testing is
the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such strategy would have been. Back tested performance is purely hypothetical
and is provided in this document solely for informational purposes. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future
performance. The value of any investment may be affected by exchange rate movements. Any decision to invest should be based on the information contained in the appropriate prospectus and after
seeking independent investment, tax and legal advice. These products may not be available in your market or suitable for you. The content of this document does not constitute investment advice nor
an offer for sale nor a solicitation of an offer to buy any product or make any investment.

An investment in exchange-traded products (“ETPs”) is dependent on the performance of the underlying index, less costs, but it is not expected to match that performance precisely. ETPs involve numerous risks
including among others, general market risks relating to the relevant underlying index, credit risks on the provider of index swaps utilised in the ETP, exchange rate risks, interest rate risks, inflationary risks,
liquidity risks and legal and regulatory risks.

The information contained in this document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering of shares in the United States or any
province or territory thereof, where none of the issuers or their products are authorised or registered for distribution and where no prospectus of any of the issuers has been filed with any securities commission or
regulatory authority. No document or information in this document should be taken, transmitted or distributed (directly or indirectly) into the United States. None of the issuers, nor any securities issued by them,
have been or will be registered under the United States Securities Act of 1933 or the Investment Company Act of 1940 or qualified under any applicable state securities statutes.
This document may contain independent market commentary prepared by WisdomTree based on publicly available information. Although WisdomTree endeavours to ensure the accuracy of the content in this
document, WisdomTree does not warrant or guarantee its accuracy or correctness. Any third party data providers used to source the information in this document make no warranties or representation of any kind
relating to such data. Where WisdomTree has expressed its own opinions related to product or market activity, these views may change. Neither WisdomTree, nor any affiliate, nor any of their respective officers,
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This document may contain forward looking statements including statements regarding our belief or current expectations with regards to the performance of certain assets classes and/or sectors. Forward looking
statements are subject to certain risks, uncertainties and assumptions. There can be no assurance that such statements will be accurate and actual results could differ materially from those anticipated in such
statements. WisdomTree strongly recommends that you do not place undue reliance on these forward-looking statements.

FOR FINANCIAL PROFESSIONAL USE ONLY A new asset class: investing in the digital asset ecosystem 50
 Disclaimer (2/4)
WisdomTree Issuer X Limited
The products discussed in this document are issued by WisdomTree Issuer X Limited (the “Issuer”). Investors should read the prospectus of the Issuer before investing and should refer to the section of the
prospectus entitled “Risk Factors” for further details of risks associated with an investment in the securities offered by the Issuer.

Securities issued by the Issuer are direct, limited recourse obligations of the Issuer alone and are not obligations of or guaranteed by any of Swissquote Bank Ltd (“Swissquote”), Coinbase Custody Trust
Company LLC (“Coinbase”), any of their affiliates or anyone else or any of their affiliates. Each of Swissquote and Coinbase disclaims all and any liability whether arising in tort, contract or otherwise which it
might have in respect of this document or its contents otherwise arising in connection herewith.

The product discussed in this document is an unregulated ETP, approved to trade on the SIX Swiss Exchange in Switzerland, Euronext Paris, Euronext Amsterdam and the Deutsche Börse Xetra in
Germany. Cryptocurrencies are a high-risk investment and may not be suitable for all types of investor. Prospective investors should be aware that the price of the underlying asset(s) by which the
securities are secured can demonstrate higher volatility than other asset classes and consequently the value of the securities may be extremely volatile. You must ensure that the nature, complexity and
risks associated with cryptocurrencies are suitable for your objectives in light of your circumstances and financial position.

Crypto Baskets and Single Altcoin Products (Solana, Cardano, Polkadot) Index Disclaimer
CF BENCHMARKS LTD DATA IS USED UNDER LICENSE AS A SOURCE OF INFORMATION FOR CERTAIN WISDOMTREE PRODUCTS. CF BENCHMARKS LTD, ITS LICENSORS AND AGENTS
HAVE NO OTHER CONNECTION TO WISDOMTREE PRODUCTS AND SERVICES AND DO NOT SPONSOR, ENDORSE, RECOMMEND OR PROMOTE ANY WISDOMTREE PRODUCTS OR
SERVICES. CF BENCHMARKS ITS LICENSORS AND AGENTS HAVE NO OBLIGATION OR LIABILITY IN CONNECTION WITH THE WISDOMTREE PRODUCTS AND SERVICES. CF
BENCHMARKS ITS LICENSORS AND AGENTS DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF ANY INDEX LICENSED TO WISDOMTREE AND SHALL NOT
HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN.

For investors in US Offshore:

The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (“the 1933 Act”) or the securities laws of any of the states of the United States. The securities
may not be offered, sold or delivered directly or indirectly in the United States or to or for the account or benefit of any “US Person”. The securities are being offered outside the United States pursuant to the
exemption from registration under Regulation S under the 1933 Act. Offering materials for the offering of the securities have not been filed with or approved or disapproved by the United States Securities and
Exchange Commission or any other state or federal regulatory authority, nor has any such regulatory authority passed upon or endorsed the merits of this offering or passed upon the accuracy or completeness of
any offering materials. Any representation to the contrary is unlawful.

For Investors in Brazil:

The Securities may not be offered or sold to the public in Brazil. Accordingly, the Securities have not been nor will they be registered with the Brazilian Securities Commission - CVM nor has it been submitted
to the foregoing agency for approval. Documents relating to the Securities, as well as the information contained therein, may not be supplied to the public in Brazil, as the offering of the Securities is not a public
offering of securities in Brazil, nor used in connection with any offer for subscription or sale of securities to the public in Brazil.

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For Investors in Chile:
Date of the offer: WisdomTree Issuer X Limited prospectus is dated 25/10/2021
(i) This offer is made pursuant to Rule 336 issued by the Comisión para el Mercado Financiero of Chile (CMF);
(ii) This offer deals with securities that are not registered in the Securities Registry nor in the Foreign Securities Registry kept by the CMF, and that are, therefore, not subject to the supervision of the CMF;
(iii) Given that the securities are not registered, there is no obligation for the issuer to disclose in Chile public information about said securities; and
(iv) The securities may not be publicly offered as long as they are not registered in the corresponding Securities Registry.

Fecha de inicio de la oferta: WisdomTree Issuer X Limited el prospecto está fechado 25/10/2021
(i) La presente oferta se acoge a la Norma de Carácter General N° 336 de la Comisión para el Mercado Financiero (CMF) de Chile.
(ii) La presente oferta versa sobre valores no inscritos en el Registro de Valores o en el Registro de Valores Extranjeros que lleva la Comisión para el Mercado Financiero, por lo que los valores sobre los cuales
ésta versa, no están sujetos a su fiscalización;
(iii) Que por tratarse de valores no inscritos, no existe la obligación por parte del emisor de entregar en Chile información pública respecto de estos valores; y
(iv) Estos valores no podrán ser objeto de oferta pública mientras no sean inscritos en el Registro de Valores correspondiente.

For Investors in Costa Rica:

This is an individual and private offer which is made in Costa Rica upon reliance on an exemption from registration before the General Superintendence of Securities (“SUGEVAL”), pursuant to article 6 of the
Regulations on the Public Offering of Securities (“Reglamento sobre Oferta Pública de Valores”). This information is confidential, and is not to be reproduced or distributed to third parties as this is NOT a public
offering of securities in Costa Rica.
The product being offered is not intended for the Costa Rican public or market and neither is it registered or will be registered before the SUGEVAL, nor can be traded in the secondary market.

For Investors in El Salvador

This document has been produced for the purpose of providing information about the exchange traded products (ETPs). This document is made available on the condition that it is for the use only by the
recipient and may not be passed on to any other person or be reproduced in any part. The ETPs have not been and will not be offered in the course of a public offering or of equivalent marketing in El Salvador
and therefore, the provisions of the Stock Market Law of 1994 (Ley del Mercado de Valores) as amended, relating to registration requirements and to prospectus requirements do not apply. The ETPs have thus
neither been registered for public distribution in El Salvador with the Stock Superintendency nor been the subject matter of a prospectus compliant with the Stock Market Law. Any subscription application by
any person other than the initial recipient of the document will be rejected.

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For Investors in Mexico:
The Securities have not been and will not be registered with the National Registry of Securities, maintained by the Mexican National Banking and Securities Commission and, as a result, may not be offered or
sold publicly in Mexico. The fund and any underwriter or purchaser may offer and sell the Securities in Mexico on a private placement basis to Institutional and Accredited Investors pursuant to Article 8 of the
Mexican Securities Market Law.
The application of regulations and tax laws can often lead to a number of different interpretations. Any views or opinions expressed in this communication represent the views of WisdomTree and should not be
construed as regulatory, tax or legal advice. WisdomTree makes no warranty or representation as to the accuracy of any of the views or opinions expressed in this communication. Any decision to invest should
be based on the information contained in the appropriate prospectus and after seeking independent investment, tax and legal advice.

For Investors in Panama

Estos valores no han sido registrados ante la Superintendencia del Mercado de Valores de Panamá, ni la oferta, venta o transacciones sobre ellos. La exención del registro se hace en base al numeral 3 del Artículo
83 del Decreto Ley 1 de 8 de julio de 1999 (Inversionistas Institucionales). En consecuencia, el tratamiento fiscal establecido en los Artículos 269 al 271 del Decreto Ley 1 de 8 de julio de 1999, no les es
aplicable. Estos valores no se encuentran bajo la supervisión de la Superintendencia del Mercado de Valores de Panamá.

For Investors in Peru:

The Securities have not been registered before the Superintendencia del Mercado de Valores (SMV) and are being placed by means of a private offer. SMV has not reviewed the information provided to the
investor. The WisdomTree Issuer X Limited Prospectus is only for the exclusive use of institutional investors in Peru and is not for public distribution.

For Investors in Uruguay:

The sale of the Securities qualifies as a private placement pursuant to section 2 of Uruguayan law 18,627. The Securities must not be offered or sold to the public in Uruguay, except in circumstances which do
not constitute a public offering or distribution under Uruguayan laws and regulations. The Securities are not and will not be registered with the Financial Services Superintendency of the Central Bank of
Uruguay.

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