Key Points:
- Bitwise Asset Management has acquired ETC Group, a London-based crypto ETP issuer with over $1 billion in assets under management, marking Bitwise’s expansion into the European market.
- The acquisition adds nine European-listed crypto ETPs to Bitwise’s portfolio, including the largest physical Bitcoin ETP (BTCE) in Europe, bringing Bitwise’s total assets under management to over $4.5 billion.
Bitwise Strengthens Global Presence
In a strategic move to bolster its position as a global crypto asset manager, San Francisco-based Bitwise Asset Management has announced its acquisition of ETC Group, a prominent London-based crypto ETP issuer. This acquisition, revealed on August 19, 2024, signifies Bitwise’s entry into the European market and adds a suite of nine European-listed crypto ETPs to its already diverse product offerings.
The deal, which pushes Bitwise’s total assets under management above $4.5 billion, includes ETC Group’s flagship product, the largest and most heavily traded physical Bitcoin ETP (BTCE) in Europe. Other notable additions to Bitwise’s portfolio include Ethereum with staking (ET32), Solana (ESOL), XRP (GXRP), and the MSCI Digital Assets Select 20 (DA20).
What is an ETP?
An ETP, or Exchange-Traded Product, is a type of security that tracks underlying securities, an index, or other financial instruments. ETPs are traded on exchanges, similar to stocks. In the context of cryptocurrencies, crypto ETPs allow investors to gain exposure to digital assets without directly owning or managing the underlying cryptocurrencies. They provide a regulated and often more accessible way for traditional investors to invest in the crypto market.
Expanding Product Suite and Market Reach
Hunter Horsley, CEO of Bitwise, emphasized the company’s goal of building a global crypto asset management firm catering to investors and financial advisors seeking specialized expertise in the rapidly growing crypto asset class. The acquisition not only allows Bitwise to serve European investors but also provides global insights and expands its product suite with innovative ETPs.
Bitwise plans to rebrand all of ETC Group’s products under the Bitwise name in the coming months. However, the company has stated that no material changes to the construction or objectives of the existing ETC investment strategies are planned at this time.
A Year of Milestones for Bitwise
The acquisition of ETC Group is the latest in a series of significant achievements for Bitwise in 2024. Earlier this year, the company launched its first spot bitcoin ETP, the Bitwise Bitcoin ETF (BITB), which rapidly grew to over $2 billion in assets. In July, Bitwise introduced its first spot Ethereum ETP, the Bitwise Ethereum ETF (ETHW), which has already accumulated more than $300 million in assets within its first few weeks.
These developments underscore Bitwise’s growing influence in the crypto asset management space and its commitment to providing sophisticated investment products for the evolving digital asset market. As the crypto landscape continues to mature, Bitwise’s expansion into Europe through the ETC Group acquisition positions the company as a key player in shaping the future of global crypto asset management.
