Cryptocurrency manager Bitwise obtains ETC Group assets
In the ever-evolving world of crypto asset management, two prominent players, Coinshares and Bitwise, are making strategic moves to expand their global reach.
Coinshares, a European crypto asset manager with assets under management (AUM) worth $4.9 billion, recently acquired Valkyrie funds, marking a significant entry into the US market. This move is a counterpart to Bitwise's acquisition of ETC Group, a London-based crypto asset manager active across mainland Europe with $1.1 billion in AUM.
The acquisitions are not isolated incidents in the consolidation trend sweeping the crypto asset management industry. The landscape is characterised by a significant consolidation cycle driven by regulatory clarity, institutional capital inflows, and a focus on resilient and infrastructure-oriented funds rather than speculative sectors like NFTs.
Key trends shaping this consolidation include a bifurcated market where capital flows predominantly into later-stage firms and infrastructure/AI-integrated ventures, triggering fund closures at earlier stages. Regulatory improvements, especially in the US, are enhancing institutional participation and encouraging strategic, compliance-focused consolidation rather than speculative expansion.
Asset managers are increasingly balancing growth with capital protection through portfolio adjustments reflecting market and regulatory dynamics. However, no direct news or reported acquisitions by either Bitwise or Coinshares in August 2025 were found in the search results, suggesting that such firms might be strategically involved in acquiring later-stage, regulated, and infrastructure-heavy crypto funds or firms with "verifiable revenue and regulatory alignment," but explicit instances for Bitwise and Coinshares remain undisclosed.
San Francisco-based Bitwise, under the leadership of CEO Hunter Horsley, acquired ETC Group, which offers a range of crypto offerings, including exchange traded commodities. Every unit of ETC Group's exchange traded commodities is backed one for one by the physical cryptocurrency. The acquisition brought Bitwise's AUM to over $4.5 billion, a significant boost from ETC Group's $1.1 billion.
Valkyrie funds, before the acquisition by Coinshares, managed assets worth $110 million. The acquisition marks another move in the growing trend of consolidation in the crypto asset management industry.
The acquisitions allow both Bitwise and Coinshares to serve a broader client base across continents, offering global insight, and expanding their product suite with innovative exchange-traded products (ETPs). Bitwise's spot Bitwise Bitcoin ETF (BITB), its largest product with over $2 billion in AUM, is set to benefit from this expansion.
While the acquisitions are a strategic move for both companies, it is crucial to note that the crypto asset management sector is undergoing a period of consolidation, with a focus on compliance and infrastructure. As the industry continues to mature, it is expected that more such strategic moves will be made by leading players in the space.
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