Bitwise Asset Management, a prominent cryptocurrency ETF provider, has acquired London-based digital asset issuer ETC Group. This acquisition will elevate Bitwise’s assets under management (AUM) to $4.5 billion, according to a company press release. ETC Group, known for its physically-backed Bitcoin fund, contributes approximately $1.1 billion in AUM to the deal.
Strategic Expansion and Global Reach
San Francisco-based Bitwise, which introduced a spot Bitcoin ETF in the U.S. earlier this year, manages seven ETFs with a total AUM of $2.7 billion. Bitwise CEO Hunter Horsley noted that the acquisition will help the company improve its offerings for European investors and expand its global footprint. Horsley emphasized that the acquisition will enable the company to better serve European investors, provide global insights, and expand its product range.
The addition of ETC Group provides Bitwise with access to a European market where crypto-exchange traded products have been established for some time, contrasting with the U.S. market where spot Bitcoin ETFs only recently received regulatory approval in early 2024.
Industry Trends and Recent Deals
The acquisition aligns with a broader trend of consolidation in the ETF industry. Recent deals include Valkyrie Investments selling its ETF business to CoinShares and Ark Investment Management acquiring Rize ETF Limited. Specific terms of the Bitwise-ETC Group deal were not disclosed, but the acquisition will integrate ETC Group’s range of crypto-focused exchange-traded products under the Bitwise brand.
Since its launch on January 11, the Bitwise Bitcoin ETF (BITB) has seen approximately $2 billion in inflows, making it the fourth most popular among the 11 SEC-approved products this year, as reported by U.K. asset manager Farside Investors.
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