Bitwise Asset Management's acquisition of ETC Group, Europe's largest physical Bitcoin ETP issuer, marks a major expansion into the European market.
Bitwise Asset Management has announced the acquisition of London-based ETC Group, the issuer of Europe's largest physical Bitcoin exchange-traded product (ETP), marking a significant expansion into the European market. The acquisition, confirmed on Monday, adds over $1 billion in crypto assets under management to Bitwise's portfolio, bringing its total assets under management (AUM) to more than $4.5 billion.
ETC Group, founded in 2019, has established itself as a leading provider of a physically backed Bitcoin ETP in Europe. With this acquisition, Bitwise will take control of nine Europe-listed ETPs, which will be rebranded under the Bitwise name in the coming months. Despite the rebranding, the core investment strategies of these products will remain unchanged.
Hunter Horsley, CEO of Bitwise, emphasized the strategic importance of this acquisition, stating, "Bitwise is building a global crypto asset manager for investors and financial advisors who want a best-in-class partner specialized in this fast-growing asset class. This acquisition allows us to serve European investors, to offer clients global insight, and to expand the product suite with innovative ETPs."
The acquisition reflects Bitwise's commitment to expanding its global footprint, particularly as crypto-pegged investment products gain more traction in Europe. The region has been ahead of the U.S. in listing these types of products, which have been available under the ETP designation for several years.
ETC Group's co-founder, Bradley Duke, expressed enthusiasm for the acquisition, noting, "We think Bitwise is building the best-of-breed firm for this new asset class and have proven their professionalism and leadership over many years. We couldn’t be more excited to continue our work in Europe as part of Bitwise."
The deal also strengthens Bitwise's position in the U.S. market, where its Bitcoin ETF (BITB) is one of the 25 fastest-growing ETPs of all time, with assets nearing $2.2 billion. The expansion into Europe through the acquisition of ETC Group is expected to further solidify Bitwise's role as a leading global player in the asset management sector.
