The ETF market is becoming a significant hotbed for crypto-focused organizations like Bitwise as it designs the buyup of ETC Group.
Bitwise, an investment asset management firm, is advancing its ETF journey with a new acquisition.
The firm recently announced its plan to acquire London-based digital-assets issuer ETC Group, although the terms of the deal remain undisclosed.
Bitwise to Manage $4.5 Billion in Assets Under Management (AUM)
According to Bloomberg, Bitwise will manage up to $4.5 billion in AUM once the acquisition is finalised, including ETC Group’s $1.1 billion in assets.
ETC Group is known for offering premium products, such as a physically-backed Bitcoin fund.
Acquisitions like this are common in the financial sector, especially when the acquired company faces challenges and seeks a more stable environment.
Often, these deals allow the acquiring firm to expand internationally without creating new products from scratch.
Earlier this year, U.S.-based Valkyrie sold its ETF business to CoinShares, a move aimed at strengthening CoinShares’ presence in the U.S. digital asset market.
Similarly, last year saw TCW Group acquire an ETF business from activist investor Engine No. 1, and ARK Investment Management, led by Cathie Wood, purchase Rize ETF Limited, another ETF issuer.
Expanding Horizons with Crypto ETFs
Bitwise is currently thriving in the digital asset sector and is looking to broaden its reach further.
Alongside major players like BlackRock, Grayscale, and Fidelity, Bitwise launched a spot Bitcoin ETF in January and an Ethereum ETF in June.
Additionally, in early August, a $40 billion institutional consultant selected Bitwise for its Bitcoin investments.
This success reflects the growing interest in crypto products among institutional investors.
Given this positive trajectory, Bitwise is exploring the possibility of offering more crypto ETFs.
Last month, Bitwise’s CIO, Matt Hougan, remarked, “Long term, as we look into 2025, we’ve entered the ETF era of crypto. We’re going to see ETFs on multiple crypto assets; we’re going to see index-based ETFs.”
In its ongoing effort to expand its offerings, Bitwise has also submitted a filing with the U.S. Securities and Exchange Commission (SEC) to list Options products on its spot Ethereum ETF.
Grayscale has made a similar move, indicating a growing demand from investors for more diverse ETF options.
