Bitwise Expands into Europe with Acquisition of ETC Group’s $1B ETP Portfolio

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Hassan Shittu

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Hassan Shittu

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Last updated: 

August 19, 2024

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Bitwise Asset Management has entered the European market through its acquisition of ETC Group, a London-based issuer of cryptocurrency exchange-traded products (ETPs). The transaction adds over $1 billion to Bitwise’s assets under management (AUM), bringing the total AUM to more than $4.5 billion.

Bitwise Acquiring ETC Group: A Strategic Expansion into the European Market

Bitwise’s acquisition of ETC Group represents a key development in the company’s global expansion plans. Established in 2019, ETC Group has built a prominent position in the European cryptocurrency market.

The firm offers a variety of ETPs, including the largest and most traded physical Bitcoin ETP (BTCE), along with Ethereum (ET32), Solana (ESOL), XRP (GXRP), and the MSCI Digital Assets Select 20 (DA20). These products are physically backed by real assets, reinforcing ETC Group’s market credibility.

For Bitwise, integrating ETC Group’s established European presence enhances its market influence and product offerings. Bitwise CEO Hunter Horsley commented on the acquisition, stating: “This acquisition allows us to offer European investors global insights and expand our product suite with ETPs.”

The transition to incorporate ETC Group’s products under the Bitwise brand will proceed in the coming months, maintaining the current investment strategies and objectives.

The acquisition aligns with Bitwise’s recent achievements in the U.S. market. In January, Bitwise launched the Bitwise Bitcoin ETF (BITB), which quickly ranked among the top 25 fastest-growing ETPs, reaching over $2 billion in assets.

This was followed by the Bitwise Ethereum ETF (ETHW) in July, which attracted over $300 million within its initial weeks.

These achievements have solidified Bitwise’s reputation as a sophisticated asset manager in the crypto markets, and the acquisition of ETC Group is seen as a natural extension of this success in the European market.

Bitwise’s Strategic Expansion: Capitalizing on European Opportunities

With the addition of ETC Group’s nine European-listed crypto ETPs, Bitwise seeks to enhance its product range and market presence. The company plans to leverage the growing interest in cryptocurrencies across Europe.

ETC Group’s co-founder Bradley Duke shared his enthusiasm about the acquisition, highlighting Bitwise’s expertise and leadership in the sector. He remarked: “For an asset management firm, culture and values are crucial, and we’re excited to continue our work in Europe under Bitwise.”

For ETC Group, the merger represents an opportunity to benefit from Bitwise’s resources and global network. Bitwise’s expansion into Europe comes as demand for crypto investment products increases.

The company seeks to grow its AUM, drive innovation, and offer a wider range of products.

Currently, Bitwise provides 20 products in the U.S., including a major crypto index fund, thematic equity ETF, multi-strategy solutions, separately managed accounts, and private funds. With the acquisition of ETC Group, Bitwise looks to replicate this success in Europe.