Bitwise Asset Management announced its acquisition of ETC Group, a cryptocurrency exchange-traded products issuer based in London. The acquisition reportedly pushes Bitwise’s assets under management to over $4.5 billion.
Crypto exchange-traded fund provider Bitwise released a statement on Aug 19 stating it had acquired ETP issuer ETC Group. Bitwise added in the announcement that it expects its total assets under management to amount to approximately $4.5 billion by the end of the transaction. Bitwise launched Bitcoin and Ethereum ETPs earlier this year.
Bitwise acquires physical BTC ETP issuer ETC Group
Digital asset manager Bitwise reported that it has closed a deal to acquire the London-based exchange-traded products issuer ETC Group. The acquisition is part of Bitwise’s expansion to the European Market. The acquisition also reportedly brings nine European crypto ETPs under Bitwise seven years after its launch.
ETC Group’s ETP suite includes physical Bitcoin ETP (BTCE), Ethereum with staking (ET32), Solana (ESOL), XRP (GXRP) and MSCI Digital Asset Select 20 (DA20).
ETC Group reportedly manages over $1.1 billion worth of assets from nine German-based exchange-traded products. $950 million of ETC’s assets under management (AUM) accounts for its physical Bitcoin ETPs assets.
According to Bitwise, the additional assets will push its total assets under management to $4.5 billion. Bitwise also stated it intended to rebrand ETC Group’s products under its name in the next few months.
Both companies have assured their customers that ETC’s investment strategies and objectives did not change significantly.
Hunter Horsley, Bitwise’s CEO, confirmed that the acquisition will enable the company to offer customers a global perspective while improving its service to European investors. He emphasized that Bitwise has built a reputation as an asset manager since its launch.
In the press release, the CEO stated, “This acquisition allows us to serve European investors, offer clients global insight, and expand the product suite with innovative ETPs.”
He added that the company intends to create a global asset manager for investors seeking an in-class partner specialized in ETPs. He expressed his anticipation of bringing both companies’ expertise to European customers.
ETC founder believes Europe is a more evolved market for Bitwise
Bitwise launched its first spot Bitcoin ETP, the Bitwise Bitcoin ETF (BITB), in January. BITB has reportedly amassed over $2 billion in assets. Data revealed the spot BTC ETP currently holds over 3% of the spot ETF market share.
Data from YahooFinance also revealed that Bitwise’s first spot, Ethereum ETP, the Bitwise Ethereum ETF (ETHW), gained over $300 million after its launch in July.
Introducing ETHW—the Bitwise Ethereum ETF.
– Fund invests directly in ETH
– 0.20% management fee (0% for first six months / $500M)
– Donates 10% of profits to Ethereum open-source developers*
– Fund's Ethereum addresses public for transparency
– Built by crypto specialists… pic.twitter.com/7Pb7Lz2wPj— Bitwise (@BitwiseInvest) July 22, 2024
ETC Group founder Bradley Duke praised Bitwise for its professionalism in the asset management sector. He expressed his confidence in the firm while emphasizing the need for values and culture in asset management.
He also pointed out that the firm can have access to a broader European market than in the US. Duke added that Bitwise can focus on its ideas within Europe through the ETC Group. The founder emphasized this by stating that the market is more developed in Europe, with more permitted cryptocurrencies and ETPs, than in the United States.
