Crypto index fund manager Bitwise has announced the acquisition of ETC Group, a UK-based physical bitcoin exchange-traded products (ETP) issuer.
The financial details of the deal were not disclosed.
Established in 2019, ETC Group offers investors secure and regulated access to the rapidly evolving digital assets and blockchain ecosystem. The firm has more than $1bn in assets under management.
The European pure-play crypto ETP provider specialises in institutional-grade products that address the rising demands of conventional financial markets. It enables clients to invest confidently in digital assets.
ETC Group’s flagship product ETC Group Physical Bitcoin (BTCE) is said to be the largest and most traded physical Bitcoin ETP in Europe. It was launched on Deutsche Börse XETRA in June 2020.
The firm also offers various other digital asset ETPs, including staking and index-based broad-market exposure, listed on European exchanges like XETRA, Euronext, SIX, and Wiener Börse.
Ethereum with staking (ET32), Solana (ESOL), XRP (GXRP), and the MSCI Digital Assets Select 20 (DA20) are other ETPs in the portfolio.
ETC Group co-founder Bradley Duke said: “We think Bitwise is building the best-of-breed firm for this new asset class and have proven their professionalism and leadership over many years.
“For an asset management firm, culture and values are essential, and we couldn’t be more excited to continue our work in Europe as part of Bitwise.”
Through the acquisition, Bitwise will expand into Europe and add nine European-listed crypto ETPs to the company’s portfolio of ETPs, hedge fund solutions, and separately managed accounts.
The deal will also bring Bitwise’s total assets under management above $4.5bn.
All ETC Group’s products are physically backed and will be renamed with the Bitwise brand in the coming months.
Bitwise has assured that there will be no significant changes to the construction or objectives of the existing ETC investment strategies.
Bitwise CEO Hunter Horsley said: “Bitwise is building a global crypto asset manager for investors and financial advisors who want a best-in-class partner specialised in this fast-growing asset class.
“This acquisition allows us to serve European investors, to offer clients global insight, and to expand the product suite with innovative ETPs.
“We’re proud of the reputation we have built over the last six years with advisors, institutions, and investors as a sophisticated asset manager in crypto markets, and look forward to bringing this expertise to European investors.”
