Shutting Down 8 ETFs, Laying Off 14% of Staff: Why is Bitwise Still Launching New Products?
Cryptocurrency asset management firm Bitwise reduced its workforce by approximately 14%, cutting around 25 positions, bringing total employees from about 180 to 155. The company did not disclose specific reasons for the layoffs or link them to AI efficiency, a trend cited by other crypto firms like Coinbase and Dune earlier in the year.
Prior to the staff reduction, Bitwise's reported client assets fell by at least $40 billion between February and April, though the exact causes—market price changes, client redemptions, or shifts in product scope—remain unclear. Concurrently, Bitwise liquidated eight ETFs over roughly three months. These included a Web3-themed fund, a BTC/ETH/Treasuries rotation strategy ETF, and six single-stock or Ethereum-linked options income ETFs.
Despite these cuts, Bitwise continues to launch new products. Recent additions include an Avalanche ETP with staking in Europe, the Hyperliquid ETF, and the acquisition of Superstate’s tokenized Crypto Carry Fund, valued over $267 million. This indicates a strategic shift away from certain thematic and complex options strategies toward products focused on direct crypto asset exposure, staking rewards, and tokenization.
The company now manages 70 investment products for over 5,500 advisory teams and institutions. The simultaneous workforce reduction and product expansion create a more complex operational environment for the smaller remaining team, though Bitwise has not detailed how specific roles or costs are affected by these changes.
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