Bitwise Asset Management, a leading global crypto asset manager, has expanded its reach into the European market by acquiring London-based ETC Group. This strategic move adds to Bitwise’s portfolio and elevates its total assets under management (AUM) to over $4.5 billion.
We’re excited to share that Bitwise has acquired ETC Group, the London-based digital asset manager and creator of Europe’s largest physical Bitcoin ETP (BTCE). The acquisition deepens our industry-leading suite of crypto products and brings Bitwise clients access to global… pic.twitter.com/RTSrrokBo3
On August 19, 2024, Bitwise announced its acquisition of ETC Group, a prominent issuer of exchange-traded products (ETPs) in Europe. The financial terms of the deal have not been disclosed. This acquisition includes ETC Group’s suite of nine European-listed crypto ETPs, which features popular products such as the physical Bitcoin ETP (BTCE) and the staked Ethereum ETP (ET32).
News today —
We're thrilled to welcome the exceptional team at @ETC_Crypto to Bitwise.
This deal: – brings Bitwise AUM >$4.5B – allows us to serve investors in Europe with institutional quality products including Europe's largest physical Bitcoin ETP (BTCE), the ET32 Ethereum… https://t.co/tazADXiaRv
“Bitwise is building a global crypto asset manager for investors and financial advisors who want a best-in-class partner specialised in this fast-growing asset class,” stated Hunter Horsley, Co-Founder and CEO of Bitwise. The acquisition marks a significant step in Bitwise’s strategy to enhance its product offerings and expand services to European investors.
ETC Group’s Role and Products
Founded in 2019, ETC Group has become a key player in the European crypto market. Its flagship product, the ETC Group Physical Bitcoin (BTCE), is noted for being the largest and most traded physical Bitcoin ETP in Europe. Other ETC Group products include ETPs for Ethereum, Solana, XRP, and the MSCI Digital Assets Select 20 (DA20).
Bradley Duke, Co-Founder and CSO of ETC Group expressed enthusiasm about the acquisition, noting, “We think Bitwise is building the best-of-breed firm for this new asset class and have proven their professionalism and leadership over many years.” He highlighted the alignment of values and the exciting prospects for continuing their work within the Bitwise framework.
Impact and Future Plans
The integration of ETC Group’s assets will enhance Bitwise’s already substantial portfolio, which includes major U.S. crypto ETPs such as the Bitwise Bitcoin ETF (BITB) and the Bitwise Ethereum ETF (ETHW). These products have achieved notable success, with BITB amassing approximately $2.2 billion in assets and ETHW gathering over $300 million in just a few weeks.
Bitwise plans to strategically expand the existing ETC Group platform across Europe, aiming to leverage its expertise in crypto asset management and bring innovative ETPs to a broader audience. This move aligns with the growing trend of institutional demand for crypto products and the evolving regulatory environment in the digital asset space.
Conclusion
The acquisition of ETC Group represents a significant milestone for Bitwise as it extends its influence into the European market. By integrating ETC Group’s established ETPs and leveraging its track record in the U.S., Bitwise aims to solidify its position as a leading global crypto asset manager. This expansion underscores the increasing globalisation of crypto investment opportunities and sets the stage for further innovation in the sector.
