US crypto manager seals deal to push into European market
Bitwise’s acquisition of ETC Group follows Robinhood’s $200mn purchase of crypto exchange Bitstamp in June
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The deal is another sign as to how the far larger US investment market is providing the firepower for American companies to expand into the European market, where mainstream asset managers such as BlackRock, Vanguard and Fidelity have built strong positions.
The deal comes after California-based retail broker Robinhood snapped up European cryptocurrency exchange Bitstamp for $200mn in June.
Bitwise’s expansion comes seven years after it was founded and months after it launched two of the first bitcoin and ether-based exchange traded funds in the US. Despite lacking the scale and name recognition of some of its rivals, Bitwise’s bitcoin ETF has amassed more than $2bn since its debut.
“This acquisition allows us to serve European investors, to offer clients global insight, and to expand the product suite with innovative ETPs,” said Hunter Horsley, Bitwise’s chief executive, in a statement.
Bitwise said it expects to have post-acquisition assets under management of about $4.5bn. The deal is Bitwise’s first in Europe, and ETC Group’s employees will be retained while its crypto products are to be rebranded as Bitwise vehicles.
“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,” said ETC Group co-founder and chief strategist Bradley Duke.
“Bitwise and ETC Group are kindred spirits in the way that we run our businesses