Bitwise Raises $70 Million to Accelerate Growth in Crypto Asset Management

Bitwise Asset Management has secured $70 million in fresh capital as it continues its expansion into institutional-grade crypto investment solutions, the firm announced in a statement on Tuesday.

The funding round saw participation from a roster of high-profile investors, including Electric Capital, MassMutual, Highland Capital, MIT Investment Management Company, Haun Ventures, ParaFi Capital, Khosla Ventures, General Catalyst, Blockchain Coinvestors, and former SoftBank president Nikesh Arora, among others.

The investment bolsters Bitwise’s balance sheet and fuels its commitment to advancing a comprehensive suite of crypto asset management products. The firm currently manages over $12 billion in client assets and offers investment solutions spanning index funds, alpha strategies, separately managed accounts (SMAs), exchange-traded funds (ETFs), non-custodial staking, and exchange-traded products (ETPs).

“Following the path charted by private equity, private credit, and high-yield bonds, crypto is coming into its own as an increasingly institutional and unique alternative asset class,” said Hunter Horsley, CEO of Bitwise. “We’re proud to have been a reliable partner to clients for the last seven years, and we are building the firm to be the best partner to clients for decades to come. We are excited to have the backing of new and existing investors who share our vision.”

The $70 million capital infusion will be directed toward strengthening Bitwise’s investment capabilities, expanding its product suite, and enhancing investor education and research. With a team of over 100 professionals across San Francisco, New York, and London, the firm plans to increase its workforce to over 130 this year to meet growing demand from wealth managers, family offices, banks, and institutional investors. A cursory search reveals 14 vacancies based in the United States, spanning engineering, marketing, research, portfolio management, legal and more.

Rapid growth

Bitwise experienced rapid expansion in 2024, with its client assets surging over tenfold, driven by growing institutional interest in digital assets. The firm has structured its operations around three core business pillars: beta, alpha, and onchain solutions, aiming to offer investors a diversified set of products tailored to various risk appetites and investment strategies.

Bitwise’s investor base includes more than 5,000 registered investment advisors (RIAs), family offices, and institutions across the U.S. and Europe. In addition, over 15 banks, broker-dealers, and financial platforms leverage Bitwise’s offerings to gain exposure to digital assets, the firm said.

New advisor

In addition to its fundraising announcement, Bitwise recently appointed Jonathan Bier as an advisor. Bier, the author of The Blocksize War and a board member of Bitcoin research and development nonprofit Brink, is regarded as one of the foremost experts on Bitcoin protocol developments. His role at Bitwise will involve advising the firm on its contributions to Bitcoin’s long-term evolution.

"Bitcoin has no CEO, no foundation, and no employees. Bitcoin is in part a decades-long story of an unprecedented, decentralized collaboration of countless developers, thinkers, educators, and operators around the world aspiring for a better and freer system," Bitwise stated in an announcement. "We view it as our responsibility to contribute as well, and as we grow, we’re in the fortunate position to do so, thanks to the trust investors place in us as a partner."