Bitwise Asset Management has announced its acquisition of ETC Group, a London-based crypto ETP issuer managing over $1 billion in assets. This strategic move marks Bitwise's entry into the European market and adds nine European-listed crypto ETPs to its portfolio, enhancing its position as a global crypto asset manager.
Key Details of the Acquisition
Expanded Product Suite: ETC Group's offerings include:
- BTCE (Europe's largest physical Bitcoin ETP)
- Ethereum with staking (ET32)
- Solana (ESOL)
- XRP (GXRP)
- MSCI Digital Assets Select 20 Index (DA20)
- Physical Backing: All products are physically backed and will transition to the Bitwise brand within months, with no planned changes to investment strategies.
- Global Footprint: Bitwise's AUM now exceeds $4.5 billion across 20+ products worldwide.
Strategic Significance
Hunter Horsley, Bitwise CEO, emphasized:
"This acquisition allows us to serve European investors with innovative ETPs while leveraging our six-year track record in crypto markets. We're bringing institutional-grade expertise to Europe's growing digital asset ecosystem."
Bradley Duke, ETC Group co-founder, added:
"Bitwise's culture and leadership align perfectly with our mission to deliver regulated crypto access. We're excited to join forces."
Bitwise's 2024 Milestones
- BITB Launch: The Bitwise Bitcoin ETF (BITB) surpassed $2B AUM, ranking among history's top 25 fastest-growing ETPs.
- ETHW Debut: The Bitwise Ethereum ETF (ETHW) attracted $300M+ within weeks of its July launch.
- Market Leadership: Maintains the world's largest crypto index fund alongside thematic equity ETFs and SMA solutions.
👉 Discover Bitwise's crypto investment solutions
European Expansion Strategy
Bitwise plans to:
- Gradually rebrand ETC Group products
- Maintain existing product structures
- Introduce new ETPs tailored to European markets
- Leverage ETC Group's exchange listings (XETRA, Euronext, SIX, Wiener Börse)
Investment Considerations
| Product | Key Feature | Risk Profile |
|---|---|---|
| BTCE | Physical Bitcoin ETP | Market volatility, regulatory changes |
| ET32 | Eth + Staking | Smart contract risks, staking yields |
| DA20 | Multi-asset index | Diversification benefits |
FAQs
Q: How does this acquisition benefit European investors?
A: It combines Bitwise's crypto expertise with ETC Group's established European presence, offering regulated access to physically backed ETPs.
Q: Will existing ETC Group products change?
A: Only branding updates are planned—no structural changes to the ETPs themselves.
Q: What makes BTCE distinctive?
A: As Europe's largest physical Bitcoin ETP, it offers direct BTC exposure with institutional-grade custody.
Q: Are these products suitable for retail investors?
A: While accessible, they carry high volatility risks—consult a financial advisor to assess suitability.
👉 Explore crypto ETP opportunities
Looking Ahead
Bitwise's expansion signals growing institutional adoption of crypto assets. The company anticipates:
- Increased European product innovation
- Enhanced cross-border crypto investment flows
- Continued education for financial advisors
Disclaimer: Crypto ETPs involve significant risk, including potential loss of principal. BITB/ETHW are not 1940 Act-registered products.