Crypto asset manager Bitwise has strengthened its global presence by acquiring London-based ETC Group, a leading provider of exchange-traded products (ETPs). The deal adds $1 billion in assets under management (AUM) to Bitwise’s portfolio, elevating its total AUM to over $4.5 billion.
Key Details of the Acquisition
- Financial Terms: Undisclosed.
- ETC Group’s Offerings: Nine Europe-listed ETPs, including:
- BTCE: A physically backed Bitcoin ETP.
- ET32: A staked Ether ETP.
- Strategic Goal: Bitwise aims to expand ETC Group’s platform across European markets.
👉 Discover how crypto ETPs are transforming investments
Why This Acquisition Matters
- Market Expansion: Bitwise, a major issuer of spot Bitcoin and Ether ETFs in the U.S., gains a foothold in Europe, where crypto ETPs have been available for years.
- Product Diversification: ETC Group’s suite of products complements Bitwise’s existing offerings, including:
- BITB (Bitwise Bitcoin ETF): ~$2.2 billion in AUM.
- Ether ETF: ~$300 million in AUM.
- Industry Growth: Crypto ETPs are flourishing in Europe, providing regulatory-compliant exposure to digital assets.
The European Crypto ETP Landscape
Unlike the U.S., Europe has long permitted crypto-linked ETPs under a broader regulatory framework. Highlights include:
| Feature | Europe | U.S. |
|---|---|---|
| Product Type | ETPs (includes ETFs) | ETFs (recently approved) |
| Availability | Since ~2015 | Since 2024 (spot ETFs) |
| Examples | BTCE, ET32 | BITB, ETHW |
👉 Explore crypto investment opportunities in Europe
Bitwise’s Vision
Hunter Horsley, CEO of Bitwise, stated:
“We’re building a global crypto asset manager for investors seeking a specialized partner in this rapidly growing asset class.”
FAQs
Q: What does ETC Group bring to Bitwise?
A: Nine established ETPs, regulatory expertise, and $1 billion in AUM.
Q: Will Bitwise launch more products in Europe?
A: Yes—the company plans to expand ETC Group’s platform.
Q: How does this affect U.S. investors?
A: Bitwise may integrate European insights into its U.S. ETF strategies.
Q: Are crypto ETPs safer than direct crypto ownership?
A: ETPs offer regulated, exchange-traded exposure without self-custody risks.
Conclusion
Bitwise’s acquisition of ETC Group marks a strategic leap into Europe’s crypto ETP market, combining expertise and assets to serve global investors. With $4.5 billion in AUM, Bitwise is poised to lead the next wave of institutional crypto adoption.
For further insights, follow Bitwise’s updates on product expansions and market trends.
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