Bitwise Asset Management announced its acquisition of ETC Group on August 19, 2024, a significant move that signifies the company’s expansion into the European market.
The ETC Group, which was established in 2019, has created a comprehensive collection of exchange-traded products (ETPs) that have achieved significant success in the cryptocurrency sector. The largest physical Bitcoin ETP (BTCE), Ethereum with staking (ET32), Solana (ESOL), XRP (GXRP), and the MSCI Digital Assets Select 20 (DA20) are all part of ETC Group’s product line. In order to guarantee that investors have direct access to the digital assets that underlie these products, they are all physically secured.
Bitwise intends to rebrand all ETC Group products under the Bitwise name in the forthcoming months. Nevertheless, the organization has guaranteed investors that the current ETC investment strategies will not undergo any substantial modifications to their objectives or construction. This acquisition is a strategic move by Bitwise, with the objective of establishing a global crypto asset management firm that will provide specialized expertise to financial advisors and investors in the swiftly expanding digital asset class.
Bitwise’s CEO, Hunter Horsley, underscored that the acquisition would facilitate the company’s ability to provide European investors with superior service and clients with a more comprehensive perspective. He emphasized Bitwise’s established reputation as a sophisticated asset manager in crypto markets over the past six years and expressed enthusiasm for the prospect of extending this expertise to European investors.
ETC Group co-founder Bradley Duke commended Bitwise for its professionalism and leadership in the crypto asset management sector, expressing his strong confidence in the company. Duke also underscored the significance of culture and values in asset management and expressed enthusiasm for the prospect of continuing ETC Group’s operations in Europe under Bitwise’s leadership.
This acquisition substantially augments Bitwise’s assets under management (AUM), bringing the total above $4.5 billion. This achievement is the culmination of a year that has been a significant one for Bitwise. The Bitwise Bitcoin ETF (BITB) was the company’s inaugural spot Bitcoin ETP, launched in January 2024. It rapidly established itself as one of the 25 fastest-growing ETPs of all time, amassing assets exceeding $2 billion. Following this, in July, Bitwise launched its inaugural spot Ethereum ETP, the Bitwise Ethereum ETF (ETHW), which has already amassed over $300 million in assets within a matter of weeks.
Bitwise also reminded investors that, in contrast to numerous other exchange-traded products, BITB and ETHW are not registered under the Investment Company Act of 1940 and are not subject to its regulations. Investors must take this distinction into account when assessing these products.
Bitwise oversees a comprehensive portfolio of 20 products in the U.S. market, in addition to its recently launched ETPs. These encompass the world’s largest crypto index fund, a market-leading thematic equity ETF, multi-strategy alpha solutions, separately managed accounts, and private funds. Bitwise plans to strategically expand the current ETC Group infrastructure across Europe, capitalizing on its established track record and expertise in the U.S. market.
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