Bitwise Ventures Into Europe by Snagging Local Crypto ETP Issuer

Bitwise Asset Management, a crypto ETF provider, has made a major acquisition as it enters the European market for the first time.

This step comes as the ETF industry continues to see consolidation, with major providers expanding their offerings to reach more markets.

Bitwise has acquired ETC Group, a London-based digital asset issuer managing up to $1.1 billion in Assets Under Management (AUM). The company’s offerings include a physically-backed Bitcoin fund and various products like Bitcoin ETP (BTCE), Ethereum Staking ETP (ET32), Solana (ESOL), XRP (GXRP), and the MSCI Digital Assets Select 20 (DA20).

By acquiring ETC Group, Bitwise expands its product lineup to include ETC Group’s ETPs, covering various digital assets beyond Bitcoin. Specifically, Bitwise adds nine European-listed crypto ETPs to its offerings, including hedge fund solutions and separately managed accounts. According to the press release, these products will be rebranded under the Bitwise name in the coming months.

This deal also represents Bitwise’s entry into a more mature market that has been familiar with crypto ETPs for some time, in contrast to the US market, which has only recently started engaging with these products over the past eight months.

“This acquisition allows us to serve European investors, to offer clients global insight, and to expand the product suite. It aligns with Bitwise’s strategy to broaden its global reach and offer a diverse range of crypto investment products,” Bitwise CEO Hunter Horsley said.

Read more: Who Owns the Most Bitcoin in 2024?

Data from Farside Investors shows that Bitwise’s BITB ranks fourth in Bitcoin ETF inflows, with around $2 billion recorded since it launched in January. In addition to the new ETPs introduced in 2024, Bitwise’s 20 US products include the world’s largest crypto index fund.

The firm also offers a leading thematic equity ETF, multi-strategy alpha solutions, separately managed accounts, and private funds. With this broad product range, Bitwise is well-positioned to strategically grow the ETC Group platform in Europe.

“Bitwise is building a global crypto asset manager for investors and financial advisors who want a best-in-class partner specialized in this fast-growing asset class,” an excerpt in the press release read.

This development highlights the ongoing trend of issuers expanding their reach and diversifying their offerings. In the coming years, crypto ETP adoption could accelerate, driven by increasing institutional demand. Additionally, as regulations around digital assets continue to mature, more issuers may explore opportunities in external markets.

 “By the end of 2024, people are going to be stunned by how many wealth management firms own a Bitcoin ETF. They are smart, many extremely well informed, and increasingly share conviction on Bitcoin. Oh, and they are long only. Going to be an amazing new constituent in the Bitcoin space,” Horsley said in April.

Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach

Besides Bitwise, other crypto ETF issuers that have opted for collaborations include Valkyrie Investments. Valkyrie sold its ETF business to CoinShares. Similarly, Ark Investment Management acquired Rize ETF Limited.

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