Bitwise secures $70m in new funding to expand crypto investment solutions

Bitwise Asset Management, a leading crypto-specialist asset manager overseeing more than $12 billion in client assets, has successfully closed a $70 million equity funding round. The fresh investment, spearheaded by Electric Capital, included contributions from prominent financial institutions and technology investors such as MassMutual, Highland Capital, MIT Investment Management Company, Haun Ventures, ParaFi Capital, Khosla Ventures, General Catalyst, Blockchain Coinvestors, and renowned technology investor Nikesh Arora.

The infusion of capital is expected to enhance Bitwise’s balance sheet, accelerate the expansion of its crypto investment solutions, and strengthen its position as an institutional leader in digital assets. With an increasing number of wealth managers, financial institutions, and family offices turning to cryptocurrency as an alternative asset class, Bitwise has experienced a surge in demand for its specialized investment products.

Why Is Bitwise Raising $70 Million Now?

The rapid institutional adoption of cryptocurrency has driven significant growth in crypto investment strategies, positioning digital assets as a mainstream component of diversified portfolios. Bitwise CEO Hunter Horsley emphasized that the industry is entering a phase where cryptocurrency is being recognized as a legitimate and institutional-grade asset class, similar to private equity, private credit, and high-yield bonds.

Horsley noted that Bitwise has remained a trusted partner for investors for the past seven years, providing reliable access to crypto investment solutions tailored to meet institutional needs. He explained that the latest funding round reflects strong investor confidence in Bitwise’s ability to bridge the gap between traditional finance and digital assets while reinforcing its commitment to long-term partnerships.

How Is Bitwise Expanding Its Crypto Investment Solutions?

Bitwise has structured its investment approach around three core business lines: beta, alpha, and onchain solutions. The firm currently offers 32 investment products designed to meet the evolving needs of institutional and high-net-worth investors. These include crypto index funds, onchain staking solutions, multi-strategy investment vehicles, bitcoin exchange-traded products (ETPs), and separately managed accounts (SMAs).

The firm has seen exceptional growth in recent years, with assets under management increasing more than tenfold in 2024 alone. This momentum underscores the growing demand for institutional crypto investment solutions, as wealth managers and financial advisors increasingly seek exposure to digital assets within a structured and regulated framework.

Where Will Bitwise Allocate Its $70 Million Funding?

The proceeds from this equity raise will be strategically deployed to strengthen Bitwise’s balance sheet, expand its range of crypto investment solutions, and enhance its institutional offerings. The firm also plans to invest heavily in research, investor education, and client service infrastructure, ensuring that its platform remains at the forefront of the rapidly evolving cryptocurrency sector.

Bitwise has outlined plans to expand its workforce from 100 to over 130 professionals across its offices in San Francisco, New York, and London. This hiring initiative aims to support the increasing demand from institutional clients and enhance the firm’s capabilities in portfolio management, risk analysis, and investment research.

Beyond internal growth, Bitwise remains committed to fostering the broader crypto investment ecosystem by contributing to the development of new financial products, market infrastructure, and best practices for responsible digital asset investing.

Who Uses Bitwise’s Crypto Investment Solutions?

Bitwise has established itself as a trusted partner for a diverse client base, ranging from registered investment advisors (RIAs) and family offices to institutional investors and financial platforms. Currently, over 5,000 wealth management teams, RIAs, and institutional clients in the United States and Europe rely on Bitwise’s products for exposure to digital assets. Additionally, more than 15 banks, broker-dealers, and financial platforms have integrated Bitwise’s investment solutions into their service offerings.

By maintaining a strong focus on crypto investment strategies tailored for institutional adoption, Bitwise has positioned itself as a leader in providing compliant, transparent, and high-quality digital asset investment products.

What’s Next for Bitwise in the Crypto Market?

As digital assets continue to mature, Bitwise is expected to play a crucial role in shaping the future of institutional crypto investment solutions. The firm remains committed to advancing research, developing innovative investment strategies, and enhancing market accessibility for investors looking to navigate the complexities of the cryptocurrency landscape.

With the backing of prominent financial institutions and technology investors, Bitwise is well-positioned to drive the next phase of growth in crypto investment solutions, offering institutional clients greater opportunities to capitalize on the digital asset revolution.