Bitwise acquires $1b Bitcoin ETP issuer to expand into Europe

Crypto asset manager Bitwise has acquired London-based ETC Group, expanding the company, which has over $1 billion in crypto assets under management, into Europe.

Bitwise, the largest crypto index fund manager in the United States, announced that it has acquired ETC Group, a London-based crypto exchange-traded product issuer with over $1 billion in assets under management.

While financial details of the deal were not disclosed, the company announced in a press release on August 19 that the acquisition marks Bitwise’s entry into the European market and adds nine European-listed crypto ETPs to its growing portfolio.

Founded in 2019, ETC Group’s ETP offerings include the physical Bitcoin ETP (BTC) and other financial products such as Ethereum (ETH), Solana (SOL), and XRP (XRP). Bitwise stated that all of ETC Group’s products will be rebranded under the Bitwise name in the coming months and that “no significant changes are currently planned to the construction or objectives of existing ETC investment strategies.”

“This acquisition provides us with the ability to serve European investors, provide global insight to our clients and expand our product suite with innovative ETPs.”

Bitwise CEO Hunter Horsley

Bitwise predicts dramatic change in the crypto world

With the acquisition, Bitwise’s total assets under management have risen to over $4.5 billion, following the launch of a number of other products earlier this year, including the Bitwise Bitcoin ETF and Bitwise Ethereum ETF. Both products have accumulated over $2 billion in assets since their launches, according to Bitwise.

Bitwise’s acquisition of ETC Group comes months after the company predicted a surge in institutional investment in crypto ETFs as major financial institutions began offering crypto ETF trading to their clients. As Bitwise chief investment officer Matt Hougan previously noted, the launch of spot Bitcoin ETFs could signal the start of a “new era of price discovery” in the crypto market, where demand for digital assets significantly outstrips supply.

Founded in 2017, Bitwise offers dozens of financial products in the U.S. market, including one of the world’s largest crypto index funds, a thematic equity ETF, multi-strategy alpha solutions, individually managed accounts and private funds. The company says it plans to strategically expand its existing ETC Group platform in Europe.