Bitwise to cut workforce by 14 percent as crypto slump hits ETF firms

Bitwise cut about 14 percent of its total workforce. That reduced the number of employees to about 155 from around 180.

Foreign media including blockchain outlet Decrypt and Bloomberg reported on Aug. 12 that the layoffs are tied to a trend in which the crypto market slump has spread to spot bitcoin exchange-traded fund (ETF) issuers.

Bitwise is a San Francisco-based asset manager in the United States. It runs more than 70 investment products and manages about $9 billion in assets. That includes a $2.3 billion spot bitcoin ETF.

Chief Executive Hunter Horsley (헌터 호슬리) described the workforce reduction as an adjustment in the process of long-term growth. He said he expects the company to keep growing as crypto is absorbed into the broader economy.

Market conditions remain difficult. Net assets in the spot bitcoin ETF market are estimated at about $77.5 billion, but money is concentrated in a small number of large products. BlackRock's IBIT accounts for about $47.3 billion and Fidelity's FBTC for $10.9 billion, while Bitwise's product stands at about $2.3 billion, less than 3 percent of the total. That means that even as the ETF market has grown, the benefits are not evenly flowing to smaller issuers.