San Francisco-based asset manager, Bitwise, has officially entered the European crypto market by acquiring the crypto investment firm ETC Group. Although the financial details of the deal remain undisclosed, this move marks a significant expansion for Bitwise.
ETC Group, based in London, manages over $1 billion in assets. Their portfolio includes a variety of crypto exchange-traded products (ETPs). These ETPs cover major cryptocurrencies like Bitcoin (BTCE), Ethereum with staking (ET32), Solana (ESOL), XRP (GXRP), and even the MSCI Digital Assets Select 20 (DA20). With this acquisition, Bitwise now adds nine European-listed crypto ETPs to its offerings, boosting its total assets under management (AUM) to over $4.5 billion.
Bitwise Expanding Its Global Reach
Bitwise CEO Hunter Horsley highlighted that this acquisition allows the company to better serve European investors, offering them global insights and expanding their range of innovative ETPs. This move strengthens Bitwise’s position in the global market, enabling them to cater to a wider range of investors.
ETC Group’s Legacy and Future
Since 2020, ETC Group has been at the forefront of launching crypto ETPs, with its first products debuting on the Deutsche Börse Xetra. These launches were approved by Germany’s Federal Financial Supervisory Authority, BaFin. Additionally, ETC Group has introduced a blockchain equity exchange-traded fund (ETF) that offers exposure to blockchain-based companies across Europe.
Bitwise’s US Success and Future Prospects
In the United States, Bitwise is already known for its involvement in the recently approved spot Bitcoin ETFs. In January, the US Securities and Exchange Commission approved 11 applications for Bitcoin ETFs, including Bitwise’s Bitcoin ETF (BITB), which now holds nearly $2.27 billion in assets.
Furthermore, Bitwise launched its spot Ether ETP, the Bitwise Ethereum ETF (ETHW), in July, which quickly gathered over $300 million in assets.
Growing Adoption of Crypto ETPs
The adoption of crypto ETPs is expected to grow rapidly in the coming years, fueled by institutional demand and a more mature regulatory environment for digital assets. Horsley previously described the adoption of Bitcoin ETFs by registered investment advisers and multifamily offices in the US as “stealthy but significant.” Currently, over $51 billion in assets are managed across 11 Bitcoin ETFs since their launch on Wall Street.
