US-based cryptocurrency fund manager Bitwise Asset Management has announced the acquisition of ETC Group, a London-based issuer of digital asset exchange-traded products (ETPs).
ETC Group offers Europe’s largest and most heavily traded physical Bitcoin ETP.
The acquisition brings ETC Group’s suite of nine European-listed crypto ETPs under the Bitwise umbrella, boosting Bitwise’s total assets under management to over $4.5 billion.
ETC Group, known for its flagship Physical Bitcoin ETP (BTCE), the largest and most heavily traded physical Bitcoin ETP in Europe, manages approximately $1.1 billion in AUM. Its product suite also includes crypto ETPs focused on Ethereum, Solana, XRP, Litecoin, and Cardano, as well as a crypto basket ETP providing access to a diversified mix of leading digital assets.
ETC Group’s products are known for being physically backed, a feature that has resonated with institutional and retail investors alike. As part of the acquisition, ETC Group’s products will be rebranded under the Bitwise name, but no material changes to their construction or objectives are planned, ensuring continuity for existing investors.
The acquisition marks Bitwise’s first major foray into Europe, a region where crypto ETPs have gained substantial traction over recent years. Hunter Horsley, CEO of Bitwise, expressed his optimism about the strategic fit between the two companies.
“This acquisition allows us to serve European investors, offer clients global insights, and expand our product suite with innovative ETPs,” Horsley said. “We’re proud of the reputation we have built over the last six years with advisors, institutions, and investors as a sophisticated asset manager in crypto markets, and look forward to bringing this expertise to European investors.”
Bradley Duke, co-founder of ETC Group, echoed his enthusiasm about the acquisition, noting the shared vision and values between the two companies.
“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,” Duke said. “For an asset management firm, culture and values are essential, and we couldn’t be more excited to continue our work in Europe as part of Bitwise.”
The deal comes at a time when the ETF and ETP industry is experiencing significant consolidation, driven by the increasing complexity and diversity of investment products available to institutional and retail investors. Bitwise’s expansion into Europe is also part of a broader trend of US financial firms seeking growth opportunities abroad.
The acquisition of ETC Group follows Bitwise’s successful launch of two of the first US-listed directly backed spot Bitcoin and Ethereum ETFs earlier this year. The Bitwise Bitcoin ETF (BITB US), in particular, has amassed over $2 billion in assets since its inception in January.
The financial terms of the acquisition have not been disclosed.