Highlights:
- Bitwise acquires ETC Group, Europe’s largest physical Bitcoin ETP issuer, expanding its AUM to over $4.5 billion.
- The acquisition brings Bitwise nine European-listed crypto ETPs, enhancing its global product suite and market presence.
- Bitwise’s move into Europe follows recent product launches, signaling the firm’s strategic expansion in the crypto ETF market.
Bitwise Asset Management has acquired London-based ETC Group, a leading issuer of crypto exchange-traded products (ETPs) in Europe. This acquisition marks Bitwise’s strategic entry into the European market, enhancing its global presence and increasing its total assets under management (AUM) to over $4.5 billion.
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Bitwise’s acquisition of ETC Group, which has more than $1 billion in assets under management, brings a robust portfolio of nine European-listed, physically backed crypto ETPs. These include products focused on Bitcoin, Ethereum with staking, Solana, and XRP. The acquisition strengthens Bitwise’s position as a global crypto asset manager, offering its clients a broader suite of innovative ETPs.
We’re excited to share that Bitwise has acquired ETC Group, the London-based digital asset manager and creator of Europe’s largest physical Bitcoin ETP (BTCE). The acquisition deepens our industry-leading suite of crypto products and brings Bitwise clients access to global… pic.twitter.com/RTSrrokBo3
— Bitwise (@BitwiseInvest) August 19, 2024
Expanding Footprint in the European Market
ETC Group, founded in 2019, has quickly established itself as a key player in the European crypto market. The firm’s flagship product, the Physical Bitcoin ETP (BTCE), is the largest and most heavily traded of its kind in Europe. Additionally, ETC Group offers ETPs for other prominent cryptocurrencies, including Ethereum, Solana, and XRP.
These products will soon be rebranded under the Bitwise name, with the core investment strategies remaining intact. Hunter Horsley, CEO of Bitwise, emphasized the significance of this acquisition in strengthening the firm’s position as a global crypto asset manager.
Horsley stated:
This acquisition allows us to serve European investors, offer clients global insight, and expand our product suite with innovative ETPs. We’re proud of the reputation we’ve built over the last six years and look forward to bringing our expertise to European investors.
Strategic Growth and Future Plans
The acquisition of ETC Group is a key move for Bitwise, especially as the firm continues to build its leadership in the global crypto asset management sector. With the addition of nine European-listed crypto ETPs, Bitwise is well-positioned to capitalize on the growing demand for digital assets across both sides of the Atlantic.
Bradley Duke, co-founder of ETC Group, expressed his enthusiasm for the acquisition, stating, “We think Bitwise is building the best-of-breed firm for this new asset class and have proven their professionalism and leadership over many years. We couldn’t be more excited to continue our work in Europe as part of Bitwise”.
This acquisition comes at a time when Bitwise is experiencing significant growth in the U.S. market. Earlier this year, the firm launched its first spot Bitcoin ETP, the Bitwise Bitcoin ETF (BITB). BITB quickly became one of the 25 fastest-growing ETPs of all time, amassing over $2 billion in assets. In July, Bitwise introduced its first spot Ethereum ETP, the Bitwise Ethereum ETF (ETHW), which gathered over $300 million in assets within weeks.
Bitwise’s move into Europe follows other significant industry consolidations. Earlier this year, U.S.-based Valkyrie Investments sold its ETF business to CoinShares, and Cathie Wood’s ARK Investment Management acquired Rize ETF Limited. These deals reflect the growing interest in and demand for crypto investment products on a global scale.
By integrating ETC Group’s products, Bitwise is positioned to capitalize on the growing demand for crypto investments in Europe. The company plans to strategically expand the existing ETC Group platform. Consequently, this will leverage its six-year track record of innovation in the crypto sector.
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