Bitwise Raises $70M Led by Electric Capital

Bitwise Asset Management, a leading crypto-specialist asset manager with over $12 billion in client assets, has successfully raised $70 million in an equity round led by Electric Capital. The investment round also saw significant contributions from MassMutual, Highland Capital, MIT Investment Management Company, Haun Ventures, ParaFi Capital, Khosla Ventures, General Catalyst, Blockchain Coinvestors, and Nikesh Arora, among others.

The funding comes at a critical juncture for Bitwise and the broader crypto asset management sector, which is experiencing strong growth due to improved regulatory clarity, surging popularity of decentralized finance (DeFi), and expanding institutional interest. Crypto asset management firms like Bitwise play a crucial role in the digital economy, providing services such as risk management, portfolio balancing, and performance tracking for both retail and institutional investors.

Hunter Horsley, CEO of Bitwise, noted the firm's seven-year track record of being an enduring partner to clients and its focus on building long-term relationships with less turnover. Bitwise has seen remarkable growth, with assets under management (AUM) increasing more than tenfold to over $12 billion in 2024, highlighting the growing appetite for sophisticated crypto investment products and services.

The new funding will be used to strengthen Bitwise's balance sheet and invest in financial solutions and investor services. This includes expanding the firm's product offerings and improving research and client service. Bitwise currently provides a wide range of 32 investment solutions, including yield and alpha strategies, multi-strategy solutions, separately managed accounts, onchain staking, index funds, and Bitcoin and Ether exchange-traded products (ETPs).

Based in San Francisco, New York, and London, Bitwise has over 100 technology and investment professionals and plans to expand its staff by more than 130 this year to address increased demand from its investors. The firm serves over 5,000 wealth teams, Registered Investment Advisors (RIAs), family offices, and institutional clients in the U.S. and Europe, working with over 15 banks, broker-dealers, and platforms.

Bitwise played a key role in the launch of spot Bitcoin ETFs, providing institutional investors with a regulated on-ramp to Bitcoin, which significantly contributed to the influx of institutional capital into crypto. The field of crypto asset management is becoming increasingly competitive,