Key Takeaways
- • Bitwise Asset Management completed a $70 million Series B fundraising round co-led by technology investor Elad Gil and crypto venture capital firm Electric Capital, publicly disclosing a valuation exceeding $500 million for the first time.
- • The San Francisco-based asset manager now manages $1.5 billion-plus in assets under management, representing 25% growth from $1.2 billion AUM at the end of Q1, driven by demand for its crypto index and equity products.
- • The round attracted a marquee roster of institutional and individual investors including hedge fund titans Stanley Druckenmiller and Daniel Loeb (Third Point LLC), Bridgewater CEO David McCormick, former Federal Reserve Governor Kevin Warsh, Henry Kravis, and executives from Blackstone, Coinbase, Facebook, and Google X.
- • Bitwise's flagship products include BITW, the world's largest crypto index fund, alongside the Bitwise Crypto Industry Innovators ETF (BITQ), which holds 30 stocks including Coinbase, MicroStrategy, Galaxy Digital, Riot Blockchain, and Voyager Digital.
Summary
Bitwise Asset Management has secured $70 million in Series B funding at a valuation exceeding $500 million, marking a significant validation of the crypto asset management sector by a diverse coalition of Wall Street and technology investors. The round was co-led by Elad Gil, a prominent Silicon Valley investor with a portfolio that includes Airbnb, Coinbase, Instacart, and dYdX, alongside Electric Capital, one of the largest crypto-focused venture capital firms with early-stage investments in companies like Kraken and Bitnominal.
The funding announcement underscores robust institutional appetite for cryptocurrency infrastructure and index products. Bitwise's assets under management have grown to $1.5 billion-plus, up 25% from $1.2 billion at the end of Q1, reflecting accelerating client adoption of the firm's suite of offerings. The company is known for managing BITW, the world's largest crypto index fund trading on OTCQX, and has expanded its product line to include bitcoin, ethereum, decentralized finance, and crypto-focused equity indexes.
The investor base reflects a convergence of hedge fund leadership, Wall Street institutions, and crypto-native venture capital. Institutional co-investors include Third Point LLC (Daniel Loeb), Willoughby Capital (Daniel Och), Moore Strategic Ventures (Louis Bacon), Vetamer Capital (Paul Eisenstein), and Coinbase Ventures. Individual investors span a wide spectrum of influence: Stanley Druckenmiller and Henry Kravis representing the hedge fund establishment; David McCormick, CEO of Bridgewater Associates; Kevin Warsh, former Federal Reserve Governor; Daniel Sundheim of D1 Capital; and executives from major technology and financial services firms including Blackstone, Facebook, Google X, and Citi Private Bank. This breadth of capital sources signals mainstream acceptance of cryptocurrency asset management as a category worthy of sustained institutional investment.
The funding announcement underscores robust institutional appetite for cryptocurrency infrastructure and index products. Bitwise's assets under management have grown to $1.5 billion-plus, up 25% from $1.2 billion at the end of Q1, reflecting accelerating client adoption of the firm's suite of offerings. The company is known for managing BITW, the world's largest crypto index fund trading on OTCQX, and has expanded its product line to include bitcoin, ethereum, decentralized finance, and crypto-focused equity indexes.
The investor base reflects a convergence of hedge fund leadership, Wall Street institutions, and crypto-native venture capital. Institutional co-investors include Third Point LLC (Daniel Loeb), Willoughby Capital (Daniel Och), Moore Strategic Ventures (Louis Bacon), Vetamer Capital (Paul Eisenstein), and Coinbase Ventures. Individual investors span a wide spectrum of influence: Stanley Druckenmiller and Henry Kravis representing the hedge fund establishment; David McCormick, CEO of Bridgewater Associates; Kevin Warsh, former Federal Reserve Governor; Daniel Sundheim of D1 Capital; and executives from major technology and financial services firms including Blackstone, Facebook, Google X, and Citi Private Bank. This breadth of capital sources signals mainstream acceptance of cryptocurrency asset management as a category worthy of sustained institutional investment.
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