Bitwise Expands European Footprint with ETC Group Acquisition
Bitwise Asset Management, a leading crypto-focused asset manager based in San Francisco, has announced its acquisition of London-based ETC Group, marking a significant expansion into the European market. The deal, announced on August 19, 2024, adds nine European-listed crypto exchange-traded products (ETPs) to Bitwise’s portfolio and increases its total assets under management to over $4.5 billion.
ETC Group, founded in 2019, has built a reputation as one of Europe’s largest dedicated crypto ETP providers. Its flagship product, the ETC Group Physical Bitcoin (BTCE), is currently the largest and most traded physical Bitcoin ETP in Europe. The company’s suite of products also includes ETPs for Ethereum with staking (ET32), Solana (ESOL), XRP (GXRP), and the MSCI Digital Assets Select 20 index (DA20).
Hunter Horsley, CEO of Bitwise, commented on the strategic move: “This acquisition allows us to serve European investors, offer clients global insight, and expand our product suite with innovative ETPs. We’re excited to bring our expertise to European investors and continue building a global crypto asset management firm.”
The acquisition comes on the heels of Bitwise’s successful launch of spot Bitcoin and Ethereum ETFs in the United States earlier this year. The Bitwise Bitcoin ETF (BITB) has accumulated over $2 billion in assets since its January launch, while the Bitwise Ethereum ETF (ETHW), introduced in July, has gathered more than $300 million in its first few weeks.
ETC Group’s co-founder Bradley Duke expressed enthusiasm about joining forces with Bitwise, stating, “We think Bitwise is building the best-of-breed firm for this new asset class and has proven their professionalism and leadership over many years.”
While Bitwise plans to rebrand ETC Group’s products under its own name in the coming months, the company has stated that no material changes to the construction or objectives of the existing investment strategies are planned at this time.
This move by Bitwise reflects a growing trend of cross-Atlantic expansion in the crypto asset management space. It follows other recent transatlantic acquisitions, such as European-based Coinshares’ purchase of US-based Valkyrie Funds in January.
As the crypto ETP market continues to mature, particularly in Europe where such products have been available for longer, this acquisition positions Bitwise to capitalize on the growing demand for regulated crypto investment vehicles across both continents.
