According to Bloomberg, Bitwise, a San Francisco-based crypto exchange-traded fund provider, has announced its acquisition of London-based ETC Group. The terms of the deal were not disclosed. Following the completion of the transaction, Bitwise will manage $4.5 billion in assets, as stated by the company on Monday. ETC Group, known for its physically-backed Bitcoin fund, manages approximately $1.1 billion in assets, according to its website.
The exchange-traded fund (ETF) market has become highly saturated, with a wide array of themes and strategies available, prompting consolidation within the industry. Some firms, including US-based Valkyrie Investments Inc., have been expanding internationally through acquisitions rather than developing new products. Earlier this year, Bitwise was among more than 10 firms to launch a Bitcoin ETF. The acquisition of ETC Group signifies Bitwise's expansion into the European market, where crypto exchange-traded products have been available for some time.
Bitwise Chief Executive Officer stated that the deal will enable the company to serve European investors, offer clients global insights, and expand its product suite. This strategic move highlights Bitwise's commitment to broadening its reach and enhancing its offerings in the rapidly evolving crypto ETF landscape.
