Bitwise Asset Management Acquires 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.

Prominent cryptocurrency ETF provider Bitwise Asset Management is acquiring London-based digital asset issuer ETC Group, a move that will increase Bitwise’s assets under management (AUM) to $4.5 billion, according to a company press release on Monday.

Known for its physically-backed Bitcoin fund, ETC Group is contributing around $1.1 billion in AUM to the deal.

Strategic Expansion and Global Reach

Having launched a spot Bitcoin ETF in the U.S. earlier this year, San Francisco-based Bitwise now manages seven ETFs with a total AUM of $2.7 billion. The acquisition will help the company improve its offerings for European investors and expand its global footprint, said Bitwise CEO Hunter Horsley.

“This acquisition will allow us to better serve European investors, provide global insights, and expand our product offerings,” Horsley added.

The acquisition will also give Bitwise access to the European market, where crypto-exchange traded products have been available for some time, in contrast to the U.S. market where spot Bitcoin ETFs only received regulatory approval in early 2024.

Industry Trends and Recent Deals

The acquisition is part of a broader consolidation trend in the ETF industry. Some recent deals include Valkyrie Investments selling its ETF business to CoinShares and Ark Investment Management acquiring Rize ETF Limited.

The terms of the Bitwise-ETC Group deal were not disclosed. The acquisition will see ETC Group’s range of crypto-focused exchange-traded products integrated under the Bitwise brand.

Since its launch on January 11, the Bitwise Bitcoin ETF (BITB) has seen around $2 billion in inflows, making it the fourth most popular among the 11 SEC-approved products this year, according to U.K. asset manager Farside Investors.

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