Bitwise to cut workforce by 14 percent as crypto slump hits ETF firms
Bitwise, an asset manager running 70+ products and managing about $9 billion, will cut its workforce by about 14%, reducing staff to about 155 from around 180, according to reports by Decrypt and Bloomberg. The move is linked to a crypto slump affecting spot bitcoin ETF issuers. Bitwise manages a $2.3 billion spot bitcoin ETF.
How this was made
The 30-second read
Why it matters
The disclosed 14% workforce reduction is framed as an adjustment tied to the crypto slump affecting spot bitcoin ETF issuers, suggesting tighter cost discipline as fee-based revenue growth is constrained by weaker bitcoin prices and uneven fund flows.
Market read
Traders may reassess near-term operating leverage and sentiment for smaller spot bitcoin ETF issuers as industry restructuring continues alongside bitcoin weakness and flow concentration.
What to watch
The article emphasizes employee count and AUM concentration but does not quantify Bitwise’s current expense run-rate, hedging/operating model changes, or whether the $2.3B product is gaining share versus peers.
Background
Bitwise runs 70+ investment products and manages about $9B in assets, including a $2.3B spot bitcoin ETF; the broader spot bitcoin ETF market is estimated around $77.5B with flows concentrated in BlackRock’s IBIT and Fidelity’s FBTC.
Ticker impact
Bitwise says it cut about 14% of staff to about 155 employees, linking layoffs to the crypto slump hitting spot bitcoin ETF issuers.
Likely modest negative bias for BITB on any follow-through concerns about AUM/fee pressure, but not a fundamental re-rate absent new AUM or guidance.
The article provides a concrete layoff figure and ties it to ETF-market stress, but it does not disclose new financial guidance, AUM changes, or specific cost savings targets.
Market effects
Reinforces that spot bitcoin ETF fee economics are concentrating among the largest issuers, pressuring smaller ETF managers’ cost structures.
US-focused asset management impact, with spillover sentiment for other crypto ETF and brokerage-adjacent firms.
Highlights global crypto market drawdown transmission into regulated ETF issuers’ operating decisions.
Counterpoint
Layoffs could be a proactive efficiency move that preserves capital for a later AUM rebound, limiting long-term damage if flows stabilize.
Key entities
- companyBitwise
San Francisco asset manager cutting about 14% of workforce to about 155 employees, citing crypto slump pressure on spot bitcoin ETF issuers.
- executiveHunter Horsley
CEO who described layoffs as an adjustment for long-term growth and expects continued growth as crypto is absorbed into the broader economy.
- executiveMatt Hougan
Chief Investment Officer arguing the market may be at the tail end of winter and that ETF holding strengthens the case after a Coldcard exploit.
