Key Takeaways:
- Bitwise has secured $70 million in funding to support team expansion and onchain solutions.
- The firm experienced rapid growth in 2024, with assets under management growing tenfold to over $12 billion.
- These funds will enhance investment strategies and drive innovative solutions.
Bitwise Asset Management, one of the largest crypto-specialist asset managers with more than $12 billion in client assets, today announced the successful close of a $70 million equity raise. The investment round was led by Electric Capital, with significant contributions from MassMutual, Highland Capital, MIT Investment Management Company, Haun Ventures, ParaFi Capital, Khosla Ventures, General Catalyst, Blockchain Coinvestors and Nikesh Arora, to name a few.
The funding comes during a critical time for Bitwise and the larger crypto asset management sector, which is being driven by strong growth, as regulatory clarity has improved, the popularity of decentralized finance (DeFi) has surged and institutional interest has expanded.
So Much to Cover: Crypto Asset Management
Crypto asset management firms such as Bitwise are critical to the digital economy. They provide a variety of services for both retail and institutional investors, such as risk management, portfolio balancing, and performance tracking. They serve as guides, helping investors understand digital assets. “Having all this in one place is especially important for newcomers to the space who may be overwhelmed by the volatility and technical jargon.”
Take, for example, a traditional investment firm wanting to branch into crypto but not equipped with the necessary in-house expertise. An investor could partner with an ETP — and work with a firm like Bitwise, which has resources to manage a part of their portfolio — and get exposure to digital assets without having to work at building an infrastructure all alone from the ground up.
Growth Fueled by Innovation and Demand
Hunter Horsley, CEO of Bitwise, noted in a release that the firm had built a seven-year track record of being an enduring partner to clients — and that their ongoing vision was focused on building long-term relationships with less turnover. “Following the path charted by private equity, private credit, and high-yield bonds, crypto is coming into its own as an increasingly institutional and unique alternative asset class,” said Horsley.
Bitwise has made great strides in recent years, with AUM up more than 10x year on year to more than $12 billion in 2024. This surge highlights the growing appetite for more sophisticated crypto investment products and services.
Strategic Allocation of Funds
The new funding will be used to strengthen Bitwise’s balance sheet and invest in financial solutions and investor services. This includes expanding other products the firm offers as well as improving research and client service.
Bitwise now provides a wide range of 32 investment solutions spanning beta, alpha, and onchain strategies. Solution offerings available include yield and alpha strategies that reward active construction and verification of new blocks, multi-strategy solutions, separately managed accounts, onchain staking, index funds showing the profitability of onchain networks etc. along with Bitcoin and Ether exchange-traded products (ETPs). By offering such diverse options, clients can find opportunities that fit their unique investment goals.
Scale and Talent Acquisition
Based in San Francisco, New York, and London, Bitwise has more than 100 technology and investment professionals. The firm plans to expand its staff by more than 130 this year to address increased demand from its investors for its investment solutions, research, client service and educational resources.
This growth is indicative of Bitwise’s dedication to serving its more than 5,000 wealth teams, Registered Investment Advisors (RIAs), family offices and institutional clients in the U.S. and Europe. The firm works with over 15 banks, broker-dealers, and platforms as well.
Bitwise’s ETF Success Story
Bitwise played a key role in the launch of spot Bitcoin ETFs, providing institutional investors with a regulated on-ramp to Bitcoin, which was previously unavailable. This has significantly contributed to the influx of institutional capital into crypto.
The Competitive Landscape
Although Bitwise is a significant part of the landscape, the field of crypto asset management is getting more and more competitive. Companies like Galaxy Asset Management and Grayscale have long been leading players in the industry, while the traditional financial behemoths — BlackRock, for example — are making major strides. These factors highlight the strong potential of the crypto asset management industry and the intensifying competition.
As an example of the former, in April 2024, after Pantera Capital announced it would seek to raise $1 billion for a new crypto fund, this was viewed as a strong sign of institutional interest. Furthermore, the cryptocurrency portfolio of Grayscale demonstrated significant growth in November 2024, soaring by 85% within a month.
More News: Bitwise Predictions for 2025: The Golden Era of Cryptocurrency
Regulatory Landscape and Market Outlook
Regulatory developments closely mirror the future of crypto asset management. Greater clarity and a supportive regulatory climate will enable the growing adoption.
According to Mordor Intelligence, the crypto asset management market is expected to grow at a compound annual growth rate of between 22% and 25% until 2030. The APAC region is projected to be the fastest-growing, and North America continues to be the largest market.
A survey of financial advisors conducted by Bitwise showed that 56% of respondents would be more likely to invest in crypto in the wake of the US election, suggesting that regulatory clarity could further drive investment in the space.
In addition to asset management, Bitwise is committed to expanding the crypto ecosystem. This forward-thinking approach has positioned them as a responsible and effective force within the growing digital asset market.
Signs indicate that Bitwise is preparing to meet the growing demand from professionals looking to invest in crypto. This $70 million cash injection will allow the firm to build out its team, broaden its product offerings, and cement its place at the forefront of the crypto asset management space.
The post Bitwise Secures $70M to Drive Crypto Solutions Amid Market Growth appeared first on CryptoNinjas.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments