Bitwise Asset Management Inc., a prominent crypto exchange-traded fund (ETF) provider, is strategically expanding its digital asset offerings, acquiring London-based Ethereum staking service Attestant.
With this acquisition, Bitwise aims to capitalise on the rising interest in Ethereum staking among institutional investors. The deal, whose financial terms remain undisclosed, strengthens Bitwise’s foothold in the staking sector and adds Attestant’s 11 employees and $3.7 billion in managed assets to its portfolio.
Bitwise’s Acquisition of Attestant
The acquisition comes when the digital asset sector is experiencing rapid transformation, with many investors eager to participate in blockchain validation activities to earn rewards.
Attestant specializes in Ethereum staking services, enabling institutional investors to use their Ether holdings to validate transactions on the Ethereum blockchain.
Following the acquisition, Bitwise’s assets under management will exceed $10 billion, a significant leap for the firm. According to Bitwise CEO Hunter Horsley, the decision to expand into staking services aligns with the changing needs of clients who are increasingly interested in earning passive income through staking.
Horsley noted that currently, approximately 20% of Bitwise’s clients express interest in staking their assets. “We are now entering a new chapter in the maturation of this space,” Horsley said.
“To be most useful for clients, you need to be at a certain scale and offer broad capabilities.” He anticipates that, within a few years, the majority of clients will likely choose to stake their crypto assets.
Staking on the Ethereum network currently yields about 3.43% annually, and data from Staking Rewards suggests that nearly a third of all Ether, amounting to approximately $112 billion, is already staked.
This increasing rate of participation highlights a growing confidence among investors in staking as a viable income-generating strategy.
Bitwise Launches Aptos Staking ETP
In addition to the Attestant acquisition, Bitwise is also launching a pioneering staking-focused product, the Bitwise Aptos Staking ETP. Scheduled to list on the SIX Swiss Exchange on November 19, 2024, the Aptos Staking ETP (ETPB) will be the world’s first exchange-traded product focused on staking Aptos.
Aptos has been praised for its enterprise-level scalability and has rapidly grown to serve over 8 million active users each month. The new Aptos Staking ETP is physically backed and designed to deliver net yields of approximately 4.7% through staking.
Targeted at both institutional and retail investors, Bitwise aims to provide secure and regulated access to staking through a best-in-class custodian, auditor, administrator, and staking infrastructure.
Why is Aptos Labs a Key Player Here?
A group of blockchain specialists who had previously worked on Meta’s blockchain projects created Aptos Labs, a major contributor to the creation of the Aptos blockchain. Backed by prominent institutional investors, including Andreessen Horowitz, Apollo Global Management, PayPal Ventures, and Franklin Templeton Investments, Aptos has quickly gained traction for its innovative architecture and user-friendly design.
This ETP marks Bitwise’s second entry in its European Total Return product suite. The first, ET32, which focuses on digital assets, recently surpassed $50 million in assets under management, showcasing strong investor interest in diversified crypto investment products.
Bitwise’s aggressive expansion into the staking sector reflects a broader trend within the crypto industry, where providers are increasingly diversifying to meet evolving investor demands.
“For seven years, Bitwise has been a dedicated partner to investors working to understand and access the opportunities in the new crypto asset class,” said Horsley.
“We’re thrilled to launch the Bitwise Aptos Staking ETP to expand access to one of the most exciting next-generation blockchains in the space,” he added.
As digital asset interest continues to grow among institutional and retail investors, Bitwise’s latest initiatives could position it as a leader in both traditional crypto funds and innovative staking products.