San Francisco-based asset manager Bitwise has expanded its presence into the European markets through the acquisition of London-based crypto investment firm ETC Group. The financial terms of the deal have not been disclosed.
ETC Group is known for its range of crypto exchange-traded products (ETPs) and manages over $1 billion in assets. The firm’s portfolio includes products such as Bitcoin ETP (BTCE), Ethereum with staking (ET32), Solana (ESOL), XRP (GXRP), and the MSCI Digital Assets Select 20 (DA20). With this acquisition, Bitwise’s assets under management (AUM) have increased to over $4.5 billion, adding nine European-listed crypto ETPs to its offerings.
“This acquisition allows us to serve European investors, to offer clients global insight, and to expand the product suite with innovative ETPs,” said Bitwise CEO Hunter Horsley in a statement.
ETC Group has been active in the crypto ETP market since 2020, launching its first products on Deutsche Börse Xetra with regulatory approval from Germany’s Federal Financial Supervisory Authority (BaFin). The company also offers a blockchain equity exchange-traded fund (ETF), providing exposure to blockchain-based companies in Europe.
In the United States, Bitwise is one of the asset managers behind the recently approved spot Bitcoin ETFs. In January, the U.S. Securities and Exchange Commission (SEC) approved 11 asset manager applications, including Bitwise’s Bitcoin ETF (BITB), which now holds nearly $2.27 billion in net assets as of Aug. 19. Additionally, Bitwise launched a spot Ether ETP, the Bitwise Ethereum ETF (ETHW), which has gathered over $300 million in assets in its first few weeks.
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The adoption of crypto ETPs is expected to accelerate in the coming years, driven by growing institutional demand and a maturing regulatory environment for digital assets.
Horsley has previously noted the “stealthy but significant” adoption of Bitcoin ETFs by registered investment advisers and multifamily offices in the U.S., with over $51 billion in AUM accumulated across 11 Bitcoin ETFs since their launch on Wall Street.
