UK-based crypto index fund manager Bitwise Asset Management has secured a $70m equity financing led by US-based venture capital firm Electric Capital.
Electric Capital specialises in cryptocurrencies, blockchain, fintech, and marketplaces.
Other participants in the funding round include MassMutual, Highland Capital, MIT Investment Management Company, Haun Ventures, ParaFi Capital, Khosla Ventures, General Catalyst, Blockchain Coinvestors, and Nikesh Arora.
Bitwise intends to use the proceeds from the financing round to strengthen its balance sheet and support the buildout of its investment capabilities and investor solutions.
Bitwise CEO Hunter Horsley said: “Following the path charted by private equity, private credit, and high-yield bonds, crypto is coming into its own as an increasingly institutional and unique alternative asset class.
“We’re proud to have been a reliable partner to clients for the last seven years, and we are building the firm to be the best partner to clients for decades to come.
“We are excited to have the backing of new and existing investors who share our vision.”
Based in the UK, Bitwise operates from offices in San Francisco, New York, and London, with a team of more than 100 technology and investment professionals.
It offers a suite of 32 investment solutions, including yield and alpha strategies, multi-strategy solutions, separately managed accounts, on-chain staking, index funds, and bitcoin ETPs, among others.
The firm said it has seen excellent growth during 2024, with client assets increasing more than 10x to over $12bn across its three core business lines, beta, alpha, and on-chain solutions.
With the investment, Bitwise plans to expand its workforce to more than 130 this year to address investor demand for investment solutions, research, client service, and education.
According to the company, more than 5,000 wealth teams, RIAs, family offices, and institutional clients in the US and Europe use its products.
