On 19 August 2024, Bitwise Asset Management announced its acquisition of ETC Group, a significant move that marks the expansion of Bitwise’s presence in the European market. Founded in 2019, ETC Group has developed a robust suite of exchange-traded products (ETPs) that have gained substantial traction in the cryptocurrency space. Among ETC Group’s offerings are the largest physical Bitcoin ETP (BTCE), Ethereum with staking (ET32), Solana (ESOL), XRP (GXRP), and the MSCI Digital Assets Select 20 (DA20). All of these products are physically backed, ensuring that investors have direct exposure to the underlying digital assets.
Bitwise plans to rebrand all ETC Group products under the Bitwise name in the coming months. However, the company has assured investors that there will be no significant changes to the construction or objectives of the existing ETC investment strategies. This acquisition is a strategic step for Bitwise, aimed at building a global crypto asset management firm that caters to the needs of investors and financial advisors seeking specialized expertise in the rapidly growing digital asset class.
Hunter Horsley, CEO of Bitwise, emphasized that the acquisition would enable the firm to better serve European investors and offer clients a more global perspective. He highlighted Bitwise’s established reputation over the past six years as a sophisticated asset manager in crypto markets and expressed enthusiasm about extending this expertise to European investors.
ETC Group co-founder Bradley Duke expressed strong confidence in Bitwise, praising the firm for its professionalism and leadership in the crypto asset management space. Duke also emphasized the importance of culture and values in asset management and voiced excitement about continuing ETC Group’s work in Europe under Bitwise’s stewardship.
This acquisition significantly increases Bitwise’s assets under management (AUM), pushing the total above $4.5 billion. This milestone comes during what has been a landmark year for Bitwise. In January 2024, the company launched its first spot Bitcoin ETP, the Bitwise Bitcoin ETF (BITB), which quickly became one of the 25 fastest-growing ETPs of all time, accumulating over $2 billion in assets. Following this, in July, Bitwise introduced its first spot Ethereum ETP, the Bitwise Ethereum ETF (ETHW), which has already gathered more than $300 million in assets in just a few weeks.
Bitwise also reminded investors that, unlike many other exchange-traded products, BITB and ETHW are not registered under the Investment Company Act of 1940 and are not subject to its regulations. This distinction is crucial for investors to consider when evaluating these products.
In addition to its newly launched ETPs, Bitwise manages a comprehensive suite of 20 products in the U.S. market. These include the world’s largest crypto index fund, a leading thematic equity ETF, multi-strategy alpha solutions, separately managed accounts, and private funds. Looking forward, Bitwise intends to strategically expand the existing ETC Group platform across Europe strategically, leveraging its expertise and established track record in the U.S. market.
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