Bitwise acquires ETC Group, expanding into Europe with $4.5B in crypto AUM.
ETC Group’s products will rebrand under Bitwise but there will be no changes to strategies.
Bitwise anticipates a shift in crypto with the introduction of spot Bitcoin ETFs.
In a strategic move to broaden its global footprint, Bitwise, the largest crypto index fund manager in the United States, has acquired London-based ETC Group, a prominent issuer of crypto exchange-traded products (ETPs).
This acquisition, announced on August 19, 2024, marks Bitwise’s significant expansion into the European market, adding more than $1 billion in assets under management (AUM) to its portfolio and bringing the firm’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 key 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 under the Bitwise name in the coming months, although the firm has assured that there will be no material changes to the construction or objectives of the existing ETC investment strategies.
Bitwise views this expansion as a pivotal moment in its growth strategy, particularly as it anticipates a dramatic shift in the crypto landscape with the introduction of spot Bitcoin ETFs. According to the CEO of Bitwise, Hunter Horsley, the acquisition allows the company “to serve European investors, offer clients global insight, and expand the product suite with innovative ETPs.”
Bitwise’s move into Europe comes on the heels of several successful product launches in the US, including the Bitwise Bitcoin ETF and the Bitwise Ethereum ETF, which have collectively attracted over $2 billion in assets since their inception earlier this year.
The acquisition also aligns with Bitwise’s prediction of a surge in institutional investment in crypto ETFs, as major financial institutions increasingly offer these products to their clients.
As Bitwise integrates ETC Group into its operations, the firm is poised to capitalize on the growing demand for digital assets across both sides of the Atlantic, further solidifying its position as a leading force in the crypto investment space.