- Bitwise Asset Management has acquired ETC Group to expand its presence in the European ETF market, managing a combined $4.5 billion in assets.
- The acquisition highlights the ongoing consolidation in the ETF industry and Bitwise’s commitment to broadening its investment strategies and market reach.
OUR TAKE
Bitwise Asset Management, a big player in the cryptocurrency exchange-traded fund (ETF) market, has announced it’s acquiring ETC Group, a London-based digital-assets issuer. This move is part of Bitwise’s plan to expand into the European market and shows that the ETF industry is getting more consolidated. The acquisition lets Bitwise offer more products and improve how it manages assets. Just as demand for new financial products is growing, particularly in the crypto sector, Bitwise is expanding at a time when both retail and institutional investors are interested in crypto.
–Heidi Luo, BTW reporter
What happened
Crypto ETF provider Bitwise Asset Management has acquired ETC Group in a move that signals its expansion into the European market. Following the completion of the transaction, Bitwise will manage a new total asset portfolio of $4.5 billion, according to a statement from the company on Monday.
Terms of the acquisition remain undisclosed, but it combines Bitwise’s robust presence in the crypto-ETF sector with ETC Group’s specialisation in digital assets, including a physically-backed bitcoin fund.
Based in London, ETC Group has carved out a niche with $1.1 billion in assets under management, which will now contribute to Bitwise’s diversified financial offering. This strategic acquisition is part of a wider trend of consolidation in the ETF industry, characterised by companies merging to increase their market reach and product diversity.
Also read: 5 facts you should know about trading crypto
Also read: Wall Street’s ETF engine revs up after $17B bitcoin haul
Why it’s important
Headquartered in San Francisco, Bitwise Asset Management is a leading name in the cryptocurrency investment industry, known for pioneering accessible and innovative financial products. As a well-known provider of crypto ETFs, Bitwise focuses on providing safe, transparent and professional access to the burgeoning crypto market.
In the increasingly crowded ETF market, companies are consolidating to streamline their operations and expand their reach. This year, US-based Valkyrie Investments sold its ETF business to rival CoinShares. Similarly, last year TCW Group acquired an ETF business from activist investor Engine, and Cathie Wood’s Ark Investment Management bought Rize ETF Limited.
Bitwise, which joined over ten other firms in launching a bitcoin ETF earlier this year, sees the acquisition of ETC Group as a strategic move to penetrate the European market. Hunter Horsley, CEO of Bitwise, stated that the acquisition would enable the company to cater to European investors, broaden its global insights and enhance its product offering. This strategy aims to leverage existing platforms to expand Bitwise’s influence in the global marketplace.
