Bitwise secures $70M to boost crypto solutions

Bitwise Asset Management, a crypto-specialist asset manager with over $12 billion in client assets, has successfully completed a $70 million equity raise.

The funding round was led by Electric Capital, with participation from MassMutual, MIT Investment Management Company, Highland Capital, Haun Ventures, and others.

The raised capital will be used to strengthen Bitwise's balance sheet and expand its investment capabilities and investor solutions.

"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," stated Hunter Horsley, Bitwise CEO.

Bitwise experienced significant growth in 2024, with client assets increasing tenfold to over $12 billion across its beta, alpha, and onchain solutions.

The firm offers a suite of 32 investment solutions, including yield and alpha strategies, multi-strategy solutions, separately managed accounts, and Bitcoin (CRYPTO:BTC) and Ether (CRYPTO:ETH) ETFs.

Bitwise has also filed to offer XRP (CRYPTO:XRP) and Solana (CRYPTO:SOL) ETFs.

With offices in San Francisco, New York, and London, Bitwise has a team of over 100 technology and investment professionals and plans to expand its staff to over 130 to meet investor demand.

The company's clients include over 5,000 wealth teams, RIAs, family offices, and institutional investors in the U.S. and Europe, along with more than 15 banks, broker-dealers, and platforms.

Crypto asset management firms like Bitwise manage various asset portfolios for clients, helping individual and institutional investors manage risk, balance portfolios, and track performance.

Competitors include Galaxy Asset Management and Grayscale, with traditional firms like BlackRock also entering the crypto space.

"We will continue to invest in the team and in new solutions across beta, alpha, and onchain," the firm said in its statement.

The market for crypto asset management firms is expected to grow, with forecasts estimating a compound annual growth rate between 22% and 25% until 2030.

Factors driving this growth include increased regulatory clarity, the rise of decentralised finance, and greater institutional investor interest in digital assets.