• Bitwise Acquires ETC Group, Expands into Europe with $4.5B in Crypto AUM
• ETC Group’s products will be rebranded as Bitwise, but there will be no changes to the strategies.
• Bitwise anticipates a shift in crypto with the introduction of spot Bitcoin ETFs.

In a strategic move to expand its global footprint, Bitwise, the largest crypto index fund manager in the United States, has acquired London-based ETC Group, a leading issuer of crypto exchange-traded products (ETPs).

This acquisition, announced on August 19, 2024, marks Bitwise’s significant expansion into the European market, adding over $1 billion in assets under management (AUM) to the portfolio, bringing the company’s total AUM to over $4.5 billion.

ETC Group acquisition gives Bitwise a foothold in Europe

Founded in 2019, ETC Group has established itself as a major player in the European crypto market, offering a range of ETPs including those based on Bitcoin, Ethereum, Solana and Ripple. These products will be rebranded as Bitwise in the coming months, although the company has assured that there will be no material changes to the construction or objectives of the existing ETC investment strategies.

Bitwise sees this expansion as a pivotal moment in its growth strategy, especially as it anticipates a dramatic shift in the crypto landscape with the introduction of spot Bitcoin ETFs. According to Bitwise CEO Hunter Horsley, the acquisition allows the company to “serve European investors, provide global insight to clients, and expand the product suite with innovative ETPs.”

Bitwise’s move into Europe follows several successful product launches in the US, including the Bitwise Bitcoin ETF and the Bitwise Ethereum ETF, which have collectively attracted more than $2 billion in assets since their launch earlier this year.

The acquisition also aligns with Bitwise’s prediction that institutional investment in crypto ETFs will increase as major financial institutions increasingly offer these products to their clients.

By integrating ETC Group into its operations, Bitwise will be able to capitalize on the growing demand for digital assets on both sides of the Atlantic, further cementing its position as a leading player in the crypto investment space.