Bitwise Asset Management announced the acquisition of ETC Group, a London-based crypto ETP issuer with over $1 billion in assets under management.
The news marks Bitwise’s expansion into Europe and “adds nine European-listed crypto ETPs to Bitwise’s broad suite of ETPs, hedge fund solutions, and separately managed accounts.”
Founded in 2019, ETC Group’s ETP suite reportedly “includes the largest and most heavily traded physical Bitcoin ETP (BTCE), Ethereum with staking (ET32), Solana (ESOL), XRP (GXRP), and the MSCI Digital Assets Select 20 (DA20).”
All of ETC Group’s products are physically “backed and will be renamed with the Bitwise brand in the coming months. No material changes to the construction or objectives of the existing ETC investment strategies are planned at this time.”
Hunter Horsley, Bitwise’s CEO:
“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. This acquisition allows us to serve European investors, to offer clients global insight, and to expand the product suite with innovative ETPs. We’re proud of the reputation we have built over the last six years with advisors, institutions, and investors as a sophisticated asset manager in crypto markets, and look forward to bringing this expertise to European investors.”
ETC Group co-founder Bradley Duke said they “couldn’t be more excited to continue our work in Europe as part of Bitwise.”
The acquisition brings Bitwise’s total assets under management “above $4.5 billion and is the latest milestone in a landmark year for Bitwise.”
In January, the company launched its first “spot bitcoin ETP, the Bitwise Bitcoin ETF (BITB), which became one of the 25 fastest-growing ETPs of all time on its way to over $2 billion in assets today.”
In July, Bitwise launched its “first spot Ethereum ETP, the Bitwise Ethereum ETF (ETHW), which has gathered more than $300 million in assets in its first several weeks.”
Investors should note that, unlike “many other exchange-traded products, BITB and ETHW are not registered under the Investment Company Act of 1940 and are not subject to its regulations.”
In addition to the new ETPs launched this year, Bitwise’s suite “of 20 products in the U.S. market includes the largest crypto index fund in the world, a leading thematic equity ETF, multi-strategy alpha solutions, separately managed accounts, and private funds.”
Bitwise plans to expand the “existing ETC Group platform in Europe in a strategic manner.”
Founded in 2017, Bitwise has a “six-year track record of investment excellence, industry-leading education, and a broad suite of professional investment products.”
The firm serves as a partner “to thousands of investment professionals and financial institutions looking to understand and access bitcoin and other crypto assets.”
ETHW and BITB are not suitable for all investors. An investment in ETHW or BITB is subject to a high degree of risk, has “the potential for significant volatility, and could result in significant or complete loss of investment.”
ETHW and BITB are not investment companies “registered under the Investment Company Act of 1940 and are not afforded its protections.”