- Bitwise acquires London-based ETC Group, adding $1B in AUM and 9 crypto ETPs
- The acquisition increases Bitwise’s total assets under management to over $4.5 billion
- This move positions Bitwise to capitalize on the growing demand for crypto ETPs in a maturing regulatory landscape
San Francisco-based asset manager Bitwise said it acquired crypto investment firm ETC Group in a significant Bitwise acquisition. This move marks the latest step in their major expansion push into Europe.
Bitwise Enters European Market with Acquisition of ETC Group
The asset manager Bitwise is making its way into European markets by acquiring crypto investment firm ETC Group. Both parties have not disclosed the financial details of the deal.
In an announcement earlier today on August 19, London-based ETC Group represents over $1 billion in AUM through its diverse portfolio of crypto exchange-traded products, including the Bitcoin ETP, BTCE; staked Ethereum, ET32; Solana, ESOL; XRP, GXRP; and the MSCI Digital Assets Select 20, DA20.
In total, the acquisition adds nine crypto ETPs listed in Europe and raises Bitwise’s total assets under management to over $4.5 billion.
“This acquisition allows us to serve European investors, offer clients a global perspective, and expand our product suite with innovative ETPs,” said Hunter Horsley, CEO of Bitwise.
Bitwise and ETC Group: Growing ETP Offerings and Market Impact
ETC Group has been launching crypto ETPs since 2020, when it introduced its first products on Deutsche Börse Xetra with approval from the German Federal Financial Supervisory Authority, or BaFin. The company is also behind a blockchain equity exchange-traded fund (ETF) that provides investors exposure to Europe-based blockchain companies.
In the U.S., Bitwise is one of the asset managers behind the recently approved Bitcoin spot ETFs. In January, the U.S. Securities and Exchange Commission greenlit 11 asset manager applications, including Bitwise’s Bitcoin ETF (BITB).
As of August 19, the fund holds nearly $2.27 billion in net assets, according to the company’s website.
In July, the company also received regulatory approval to launch an ETH Ether spot ETF, the Bitwise Ethereum ETF (ETHW). According to Bitwise, the fund gathered over $300 million in assets within its first few weeks.
The adoption of crypto ETPs is expected to accelerate in the coming years, driven by institutional demand and a maturing regulatory environment for digital assets.
Horsley has previously described the adoption of Bitcoin ETFs by registered investment advisors and multifamily offices in the U.S. as “stealthy but significant.” Since their launch on Wall Street, 11 Bitcoin ETFs have accumulated over $51 billion in AUM.
Conclusion
The acquisition of the ETC Group strengthens Bitwise’s position in European crypto markets, increasing product offerings and enhancing the ability to serve international investors.
