Bitwise, a prominent crypto asset manager, has embarked on a significant expansion into the European market by acquiring the London-based ETC Group, a well-established provider of exchange-traded products (ETP). This strategic acquisition fortifies Bitwise’s presence in Europe, integrating nine of ETC Group’s ETP offerings into its portfolio.

While the precise financial details of the acquisition remain undisclosed, the deal substantially enhances Bitwise’s assets under management (AUM). The assimilation of ETC Group’s $1 billion AUM propels Bitwise’s total AUM to surpass the $4.5 billion threshold, marking a pivotal moment in its growth trajectory.

Among the ETPs incorporated into Bitwise’s expanding portfolio are ETC Group’s Europe-listed products, including a physical bitcoin ETP (BTCE) and a staked ether ETP (ET32). These products have garnered attention in the European market, where crypto-pegged products have been more prevalent and accessible than in the U.S.

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Bitwise, recognized as a key player in the U.S. market with its spot bitcoin (BITB) and ether (ETHW) ETFs, now aims to leverage ETC Group’s established platform to deepen its influence in Europe. The acquisition is not merely a consolidation of assets but a deliberate move to build a robust, global crypto asset management enterprise, catering to investors and financial advisors seeking a specialized partner in the burgeoning digital asset class.

Hunter Horsley, CEO of Bitwise, expressed the company’s ambition, stating, “Bitwise is crafting a global crypto asset manager, one that delivers unparalleled expertise and commitment to investors and financial advisors navigating this rapidly evolving landscape.”

With this strategic acquisition, Bitwise is poised to capitalize on the European market’s maturity in crypto-pegged investment products, a market where similar products have thrived under the ETP designation for a considerable time. This move positions Bitwise not only as a dominant force in the U.S. but also as a formidable contender in the European market, enhancing its global footprint and offering a diversified suite of investment products to a broader audience.