Crypto asset management firm Bitwise has raised $70 million in a new funding round, the company announced on Feb. 25.
The sum will go to Bitwise’s team development and its core product business. Investors in the round include Electric Capital, MassMutual, MIT Investment Management Company, Highland Capital, and Haun Ventures, among others.
According to the announcement, Bitwise experienced 10X growth in client assets under management in 2024, rising to over $12 billion.
The company has been active in the digital assets fund space, offering a Bitcoin (BTC) and an Ether (ETH) exchange-traded fund (ETF) while also filing to offer XRP (XRP) and Solana (SOL) ETFs. Its investment solutions also include a crypto index fund and funds with exposure to different parts of the Web3 space.
Crypto asset management firms like Bitwise are companies that manage different basket of assets for clients. They serve both individual and institutional investors, helping them to manage risk, balance portfolios, and track performance.
Some other firms similar to Bitwise — and competitors to Bitwise — are Galaxy Asset Management and Grayscale. Traditional asset management firms like BlackRock have recently entered the crypto space.
Many crypto asset management firms have been showing signs of growth in the bull run. In April 2024, venture capital firm Pantera Capital announced that it was seeking to raise $1 billion for a new crypto fund that would invest in a wide variety of blockchain-based assets. In November 2024, Grayscale’s portfolio showed significant monthly growth, up 85%.
Related: 56% of advisers more likely to invest in crypto after Trump win: Bitwise survey
The market for crypto asset management firms is expected to grow over the coming years, with various research firms forecasting a compound annual growth rate between 22% and 25% until 2030. Asia-Pacific is the fastest-growing market for crypto asset management firms, while North America remains the largest, according to Mordor Intelligence.
Some of the factors contributing to the growth are increased regulatory clarity, the rise of decentralized finance, and increased interest from institutional investors in digital assets.
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