Bitwise acquires $1b Bitcoin ETP issuer to expand into Europe

As a seasoned analyst with over two decades of experience in the financial industry, this acquisition by Bitwise of ETC Group is a strategic move that I find both intriguing and promising. Having witnessed the evolution of the crypto market from its infancy, I can attest to the immense potential it holds for institutional investors.


U.S.-based crypto asset manager Bitwise has taken a step towards European growth by purchasing London-based ETC Group, which currently manages over $1 billion worth of cryptocurrencies.

In simple terms, the leading American cryptocurrency index fund manager, known as Bitwise, recently made the decision to purchase ETC Group – a London-based organization specializing in issuing exchange-traded products for crypto, with over $1 billion worth of assets under their management.

The specific monetary aspects of the agreement remain undisclosed, but this purchase indicates that Bitwise is venturing into the European market. As a result, it will incorporate nine cryptocurrency Exchange-Traded Products listed on European exchanges into its expanding collection, as stated in their press release on August 19th.

Established in 2019, ETC Group currently offers Exchange-Traded Products (ETPs) that include Bitcoin (BTC), as well as other digital assets like Ethereum (ETH), Solana (SOL), and XRP (XRP). Bitwise has announced that they will be rebranding all of ETC Group’s products under the Bitwise name over the next few months. At this point, there are no plans to make significant changes in the structure or goals of the existing ETC investment strategies.

“Through this purchase, we can cater to European investors, provide a global perspective for our clients, and broaden our range of exchange-traded products with cutting-edge ETPs.”

Bitwise CEO Hunter Horsley

Bitwise anticipates dramatic shift in crypto landscape

Through the recent acquisition and various product introductions earlier this year such as the Bitwise Bitcoin ETF and Bitwise Ethereum ETF, Bitwise’s managed assets have skyrocketed to more than $4.5 billion. As reported by Bitwise, these two products alone have gathered over $2 billion in assets since their debut.

Recently, Bitwise has taken over ETC Group. This follows predictions by Bitwise that there will be an increase in institutional investment in crypto Exchange-Traded Funds (ETFs), as more major financial institutions start offering crypto ETF trades to their clients. Previously, the head of investments at Bitwise, Matt Hougan, stated that the launch of spot Bitcoin ETFs could mark the beginning of a new phase in the discovery of prices in the cryptocurrency market, where demand for digital assets is much greater than the available supply, suggesting a significant imbalance.

Established in 2017, Bitwise specializes in providing numerous financial services within the U.S., including one of the biggest crypto index funds globally, a thematic equity exchange-traded fund (ETF), multi-strategy investment solutions, individually managed accounts, and private investment options. The firm intends to extend its existing ETC Group platform in Europe by implementing strategic growth plans.

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2024-08-19 17:12