Bitwise Expands into Europe with ETC Group Acquisition

Bitwise Asset Management, headquartered in San Francisco, has extended its reach into Europe by acquiring the London-based crypto investment firm ETC Group. The acquisition, announced on August 19th, brings Bitwise’s total assets under management to over $4.5 billion, an increase attributed to the addition of nine European-listed crypto exchange-traded products (ETPs).

Strategic European Expansion

ETC Group, known for its suite of physical crypto ETPs, manages over $1 billion in assets. Among their offerings are products focused on leading cryptocurrencies like Bitcoin (BTCE), Ethereum with staking (ET32), and Solana (ESOL). Since its inception in 2020, ETC Group has consistently launched regulated crypto ETPs on Deutsche Börse Xetra, supported by Germany’s Federal Financial Supervisory Authority (BaFin).

Enhanced Product Suite

Bitwise CEO Hunter Horsley views the acquisition as a strategic move to better serve European investors and expand Bitwise’s product offerings. Horsley emphasised that this acquisition will allow Bitwise to introduce innovative ETPs to the European market while offering clients a more global perspective.

Bitwise’s US Presence

In the United States, Bitwise has been a prominent player in the cryptocurrency investment space, notably with the recent launch of its spot Bitcoin ETF (BITB). The fund has attracted significant attention, with over $2.27 billion in net assets as of mid-August. Bitwise also gained approval to launch a spot Ether ETP, which has quickly gathered over $300 million in assets.

Conclusion

Despite Bitwise’s expansion and success in both Europe and the United States, the broader market for crypto ETPs still faces challenges. Regulatory uncertainty and fluctuating investor sentiment could present hurdles for future growth.