SAN FRANCISCO--(BUSINESS WIRE)--Bitwise Asset Management today announced the acquisition of ETC Group, a London-based crypto ETP issuer with over $1 billion in assets under management. The news marks Bitwise's expansion into Europe and adds nine European-listed crypto ETPs to Bitwise's broad suite of ETPs, hedge fund solutions, and separately managed accounts.
Founded in 2019, ETC Group's ETP suite includes the largest and most heavily traded physical Bitcoin ETP (BTCE), Ethereum with staking (ET32), Solana (ESOL), XRP (GXRP), and the MSCI Digital Assets Select 20 (DA20). All of ETC Group's products are physically backed and will be renamed with the Bitwise brand in the coming months. No material changes to the construction or objectives of the existing ETC investment strategies are planned at this time.
"Bitwise is building a global crypto asset manager for investors and financial advisors who want a best-in-class partner specialized in this fast-growing asset class," said Hunter Horsley, Bitwise's CEO. "This acquisition allows us to serve European investors, to offer clients global insight, and to expand the product suite with innovative ETPs. 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."
"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 Bradley Duke. "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 acquisition brings Bitwise's total assets under management above $4.5 billion and is the latest milestone in a landmark year for Bitwise. In January, the company launched its first spot bitcoin ETP, the Bitwise Bitcoin ETF (BITB), which became one of the 25 fastest-growing ETPs of all time on its way to over $2 billion in assets today. In July, Bitwise launched its first spot Ethereum ETP, the Bitwise Ethereum ETF (ETHW), which has gathered more than $300 million in assets in its first several weeks.
Investors should note that, unlike many other exchange-traded products, BITB and ETHW are not registered under the Investment Company Act of 1940 and are not subject to its regulations.
In addition to the new ETPs launched this year, Bitwise's suite of 20 products in the U.S. market includes the largest crypto index fund in the world, a leading thematic equity ETF, multi-strategy alpha solutions, separately managed accounts, and private funds. Bitwise plans to expand the existing ETC Group platform in Europe in a strategic manner.
Founded in 2017, Bitwise has a six-year track record of investment excellence, industry-leading education, and a broad suite of professional investment products. The firm serves as a partner to thousands of investment professionals and financial institutions looking to understand and access bitcoin and other crypto assets.
ETHW and BITB are not suitable for all investors. An investment in ETHW or BITB is subject to a high degree of risk, has the potential for significant volatility, and could result in significant or complete loss of investment. ETHW and BITB are not investment companies registered under the Investment Company Act of 1940 and are not afforded its protections.
About Bitwise
Bitwise Asset Management is the largest crypto index fund manager in America. Thousands of financial advisors, family offices, and institutional investors partner with Bitwise to understand and access the opportunities in crypto. For six years, Bitwise has established a track record of excellence managing a broad suite of index and active solutions across ETFs, separately managed accounts, private funds, and hedge fund strategies. Bitwise is known for providing unparalleled client support through expert research and commentary, its nationwide client team of crypto specialists, and its deep access to the crypto ecosystem. The Bitwise team of more than 60 professionals combines expertise in technology and asset management with backgrounds including BlackRock, Millennium, ETF.com, Meta, Google, and the U.S. Attorney's Office. Bitwise is backed by leading institutional investors and has been profiled in Institutional Investor, Barron's, Bloomberg, and The Wall Street Journal. It has offices in San Francisco and New York. For more information, visit www.bitwiseinvestments.com.
About ETC Group
ETC Group provides investors with secure, regulated access to the rapidly evolving digital assets and blockchain ecosystem. As Europe's largest dedicated, pure-play Crypto ETP provider, the company specializes in institutional-grade products that meet the rigorous demands of traditional financial markets, allowing clients to invest with confidence in digital assets.
Since its inception in 2019, ETC Group has established a track record of over four years, delivering innovative digital asset-backed securities such as its flagship product, ETC Group Physical Bitcoin (BTCE)-the largest and most traded physical Bitcoin ETP in Europe, launched on Deutsche Börse XETRA in June 2020. The company also offers a range of other digital asset ETPs, including staking and index-based broad-market exposure, listed on leading European exchanges like XETRA, Euronext, SIX, and Wiener Börse.
More than just a platform or crypto exchange, ETC Group serves as a gateway to regulated crypto investments, combining the safety of traditional finance with the innovation of digital assets. With a team deeply experienced in both ETFs and digital assets, the company is committed to delivering high-quality, passive investment strategies that provide secure, compliant avenues for participating in the digital asset opportunity. For more information, visit www.etc-group.com.
ETHW Risks and Important Information
This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit ethwetf.com/prospectus.
The Bitwise Ethereum ETF ("ETHW" or the "Fund") is not suitable for all investors. An investment in ETHW is subject to a high degree of risk, has the potential for significant volatility, and could result in significant or complete loss of investment.
ETHW is not an investment company registered under the Investment Company Act of 1940 (the "1940 Act") and is not afforded its protections.
Shares of ETPs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The NAV may not always correspond to the market price of ether and, as a result, Creation Units may be created or redeemed at a value that is different from the market price of the Shares. Authorized Participants' buying and selling activity associated with the creation and redemption of Creation Units may adversely affect an investment in the Shares.
ETHW will not participate in the proof-of-stake validation mechanism to earn additional ether or seek other means of generating income from its ether holdings.
The amount of ether represented by a Share will continue to be reduced during the life of the Fund due to the transfer of the Fund's ether to pay for the Sponsor's management fee, and to pay for litigation expenses or other extraordinary expenses. This dynamic will occur irrespective of whether the trading price of the Shares rises or falls in response to changes in the price of ether.
There is no guarantee or assurance that the Fund's methodology will result in the Fund achieving positive investment returns or outperforming other investment products.
Investors may choose to use the Fund as a means of investing indirectly in ether. An investment in the Fund is not a direct investment in ether. Because the value of the Shares is correlated with the value of the ether held by the Fund, it is important to understand the investment attributes of, and the market for, ether.
Ether Risk. There are significant risks and hazards inherent in the ether market that may cause the price of ether to fluctuate widely. The Fund's ether may be subject to loss, damage, theft or restriction on access. Investors considering a purchase of Shares should carefully consider how much of their total assets should be exposed to the ether market, and should fully understand, be willing to assume, and have the financial resources necessary to withstand the risks involved in the Fund's investment strategy.
Liquidity Risk. The market for ether is still developing and may be subject to periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the desired price. Possible illiquid markets may exacerbate losses or increase the variability between the Fund's NAV and its market price. The lack of active trading markets for the Shares may result in losses on investors' investments at the time of disposition of Shares.
Regulatory Risk. Future and current regulations by a U.S. or foreign government or quasi-governmental agency could have an adverse effect on an investment in the Fund.
Blockchain Technology Risk. Certain of the Fund's investments may be subject to the risks associated with investing in blockchain technology. The risks associated with blockchain technology may not fully emerge until the technology is widely used. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Because blockchain technology systems may operate across many national boundaries and regulatory jurisdictions, it is possible that blockchain technology may be subject to widespread and inconsistent regulation.
Nondiversification Risk. The Fund is nondiversified and will hold a single issue. As a result, a decline in the market value of a particular issue held by the Fund may affect the Fund's value more than if it invested in a larger number of issuers.
Recency Risk. The Fund is recently organized, giving prospective investors a limited track record on which to base their investment decision. If the Fund is not profitable, the Fund may terminate and liquidate at a time that is disadvantageous to Shareholders.
Bitwise Investment Advisers, LLC serves as the sponsor of the Fund. Foreside Fund Services, LLC serves as the Marketing Agent for ETHW, and is not affiliated with Bitwise Investment Advisers, LLC, Bitwise, or any of its affiliates.
BITB Risks and Important Information
This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit bitbetf.com/prospectus.
The Bitwise Bitcoin ETF ("BITB" or the "Fund") is not suitable for all investors. An investment in BITB is subject to a high degree of risk, has the potential for significant volatility, and could result in significant or complete loss of investment.
BITB is not an investment company registered under the Investment Company Act of 1940 (the "1940 Act") and is not afforded its protections.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The NAV may not always correspond to the market price of bitcoin and, as a result, Creation Units may be created or redeemed at a value that is different from the market price of the Shares. Authorized Participants' buying and selling activity associated with the creation and redemption of Creation Units may adversely affect an investment in the Shares.
The amount of bitcoin represented by a Share will continue to be reduced during the life of the Fund due to the transfer of the Fund's bitcoin to pay for the Sponsor's management fee, and to pay for litigation expenses or other extraordinary expenses. This dynamic will occur irrespective of whether the trading price of the Shares rises or falls in response to changes in the price of bitcoin.
There is no guarantee or assurance that the Fund's methodology will result in the Fund achieving positive investment returns or outperforming other investment products.
Investors may choose to use the Fund as a means of investing indirectly in bitcoin. Because the value of the Shares is correlated with the value of the bitcoin held by the Fund, it is important to understand the investment attributes of, and the market for, bitcoin.
Bitcoin Risk. There are significant risks and hazards inherent in the bitcoin market that may cause the price of bitcoin to fluctuate widely. The Fund's bitcoin may be subject to loss, damage, theft or restriction on access. Investors considering a purchase of Shares should carefully consider how much of their total assets should be exposed to the bitcoin market, and should fully understand, be willing to assume, and have the financial resources necessary to withstand the risks involved in the Fund's investment strategy.
Liquidity Risk. The market for bitcoin is still developing and may be subject to periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the desired price. Possible illiquid markets may exacerbate losses or increase the variability between the Fund's NAV and its market price. The lack of active trading markets for the Shares may result in losses on investors' investments at the time of disposition of Shares.
Regulatory Risk. Future and current regulations by a U.S. or foreign government or quasi-governmental agency could have an adverse effect on an investment in the Fund.
Blockchain Technology Risk. Certain of the Fund's investments may be subject to the risks associated with investing in blockchain technology. The risks associated with blockchain technology may not fully emerge until the technology is widely used. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Because blockchain technology systems may operate across many national boundaries and regulatory jurisdictions, it is possible that blockchain technology may be subject to widespread and inconsistent regulation.
Nondiversification Risk. The Fund is nondiversified and may hold a smaller number of portfolio securities than many other products. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers.
Recency Risk. The Fund is recently organized, giving prospective investors a limited track record on which to base their investment decision. If the Fund is not profitable, the Fund may terminate and liquidate at a time that is disadvantageous to Shareholders.
Bitwise Investment Advisers, LLC serves as the sponsor of the Fund. Foreside Fund Services, LLC serves as the Marketing Agent for BITB, and is not affiliated with Bitwise Investment Advisers, LLC, Bitwise, or any of its affiliates.
Contacts
Frank Taylor/Stephanie Dressler
Dukas Linden Public Relations
Bitwise@DLPR.com
