Bitwise Asset Management, a notable player in the crypto exchange-traded fund (ETF) market, has announced, earlier today, its acquisition of London-based ETC Group, further intensifying consolidation in the ETF sector.
Although the financial details of the deal remain undisclosed, the transaction will boost Bitwise’s assets under management to $4.5 billion. ETC Group is known for its physically-backed Bitcoin fund, and currently manages approximately $1.1 billion in assets. Bloomberg reported.
Bitwise’s Acquisition Of ETC Group
The ETF business is seeing a general trend of consolidation, which is reflected in this acquisition. Deal activity in the industry has increased as companies look to expand their services and simplify operations in the face of a crowded market.
Valkyrie Investments Inc. sold its ETF business to CoinShares earlier this year. Last year, Cathie Wood-led Ark Investment Management bought Rize ETF Limited, and TCW Group bought an ETF company from Engine No. 1.
Businesses are increasingly looking outside of their home markets for growth, as the ETF market is bursting at the seams with options spanning a wide range of themes and techniques. To break into the European market, where cryptocurrency exchange-traded products have been around for a while, Bitwise acquired ETC Group in a calculated move.
The creator of ETC Group, Bradley Duke, highlighted the deal’s strategic advantages but refrained from providing any further information regarding the transaction.
According to Bitwise CEO Hunter Horsley, “The acquisition allows us to serve European investors, offer clients global insight, and expand our product suite.”
Bitwise Establishes Its Presence in the Digital Space
Bitwise has been making a lot of effort to get more recognition in the digital asset market. The company debuted an Ethereum ETF in June and a spot Bitcoin ETF in January. Significant institutional interest has also been shown in it. Recently, a $40 billion institutional consultancy selected Bitwise for its Bitcoin investments.
The acquisition highlights Bitwise’s strategic focus on worldwide expansion and its dedication to growth. Consolidation is expected to continue to be a major trend in the ETF market as it develops since businesses need to expand their worldwide reach and product offerings.
With significant competitors like Fidelity, Greyscale, and BlackRock also growing their ETF holdings, Bitwise’s most recent action puts it in a strong position for future growth and a competitive edge in the dynamic world of digital assets.