Bitwise Asset Management Acquires London-Based Crypto ETP Issuer ETC Group, Strengthening European Market Presence

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As a seasoned researcher with a keen interest in the ever-evolving landscape of digital assets and investment strategies, this recent acquisition of ETC Group by Bitwise Asset Management has caught my attention. Having closely followed both companies’ trajectories over the years, it is clear that this move signifies a significant step forward for Bitwise, particularly in expanding its presence in Europe.

On August 19th, 2024, I was part of the team at Bitwise Asset Management who proudly announced our acquisition of ETC Group. This strategic move signifies an exciting expansion of our footprint in the European market. Established in 2019, ETC Group has built a strong portfolio of exchange-traded products (ETPs) that have made significant waves in the cryptocurrency sphere. Their offerings include the largest physical Bitcoin ETP (BTCE), Ethereum with staking (ET32), Solana (ESOL), XRP (GXRP), and the MSCI Digital Assets Select 20 (DA20). What sets these products apart is their physical backing, ensuring that investors have direct access to the underlying digital assets.

In the upcoming months, Bitwise intends to unify all products from the ETC Group under its own brand name. But, fear not, investors! The fundamental structure and goals of the current ETC investment strategies will remain untouched. This acquisition serves as a strategic move for Bitwise, striving to establish a comprehensive crypto asset management company that meets the demands of both individual investors and financial advisors who are keen on specialized knowledge in the burgeoning digital assets sector.

Hunter Horsley, CEO of Bitwise, underscored that the acquisition would empower the company to cater better to European investors and provide them with a broader global outlook. He underscored Bitwise’s well-earned reputation over the last six years as a seasoned crypto asset manager and shared his excitement about expanding this expertise to European clientele.

Bradley Duke, a co-founder of ETC Group, showed great faith in Bitwise, highlighting their expertise and pioneering role within the crypto asset management sector. He also underscored the significance of culture and values in financial management, and expressed enthusiasm about continuing ETC Group’s endeavors in Europe under Bitwise’s guidance.

As a long-time investor with a focus on cryptocurrencies and ETFs, I find it fascinating to witness the rapid growth and success of Bitwise. Having closely followed their journey, I can attest that this latest acquisition is a significant milestone in their story. Reaching over $4.5 billion in assets under management (AUM) is no small feat, especially considering the highly competitive landscape of the ETF industry.

As a crypto investor, I’d like to emphasize that while exploring Bitwise Bitcoin Trust (BITB) and Ethereum PoW Trust (ETHW), it’s essential to bear in mind they aren’t registered under the Investment Company Act of 1940. This implies they operate outside the regulatory framework established by this act. This distinction is vital when assessing these products, as it could significantly impact your investment decisions.

Beyond their recently introduced Exchange-Traded Products (ETPs), Bitwise currently oversees a diverse range of 20 investment options in the United States. These products encompass the largest crypto index fund globally, a top-performing thematic equity ETF, various multi-strategy investment solutions, individually managed accounts, and private funds. In the near future, Bitwise plans to extend its current European platform, ETC Group, by tactically growing it across Europe, utilizing their American market expertise and proven track record.

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2024-08-19 17:24