Key facts
- Bitwise Asset Management laid off approximately 14% of its staff.
- The firm's workforce was reduced from around 180 to 155 employees.
- CEO Hunter Horsley stated the current workforce is the largest in the company's eight-year history.
- Bitwise manages over 70 products and approximately $9 billion in assets, including a $2.3 billion spot Bitcoin ETF.
- The crypto market has seen a significant downturn, with Bitcoin prices falling substantially.
- Several other crypto firms have also conducted layoffs or ceased operations.
Bitwise Asset Management has reduced its workforce by approximately 14%, cutting about 25 employees and bringing its headcount to around 155 from roughly 180. CEO Hunter Horsley stated that despite the layoffs, the remaining workforce is the largest in the company's eight-year history and anticipates continued growth as cryptocurrency becomes more integrated into the broader economy.
The firm manages over 70 investment products with about $9 billion in assets, including a spot Bitcoin ETF that holds $2.3 billion. This comes as the broader crypto market faces a significant slump, with Bitcoin prices falling close to half from their record highs and the market capitalization dropping over 12%.
Bitwise joins a growing list of crypto companies implementing staff reductions. Coinbase cut 14% of its workforce in May, citing market conditions and the impact of AI. Prime broker FalconX also reduced its staff by about 10%. Two exchanges, BitMEX and BitMart, have announced plans to close their platforms entirely.
Analysis suggests a shift in retail investor focus from crypto to prediction markets and AI stocks. CoinGecko reported a significant increase in prediction market volume, while spot trading volume on major centralized exchanges has declined. Barclays analysts have described prediction markets as "retail's shiny new toy."
Despite the layoffs, Bitwise executives remain optimistic about the future of crypto. Chief Investment Officer Matt Hougan believes the market may be nearing the bottom of its downturn and suggested that recent security exploits strengthen the case for holding Bitcoin through ETFs.