This week, Bitwise, an investment asset manager, announced a significant acquisition that would elevate its ETF operations. The company will acquire London-based digital assets issuer ETC Group.
Bitwise's New Acquisition
According to Bloomberg, Bitwise will be tasked with managing up to $4.5 billion in AUM upon completion. This sum includes the $1.1 billion AUM already managed by ETC Group.
Strategic Acquisition
In the financial industry, such acquisitions are common, particularly when the target company is experiencing difficulties and seeks a more stable environment. Rather than creating a new product from scratch, companies often use acquisitions for international expansion.
Growth in Digital Assets
Bitwise is actively growing in the digital asset space and plans further expansion. The investment firm launched its spot Bitcoin ETF in January and its Ethereum ETF in June, joining companies like BlackRock, Grayscale, and Fidelity.
The acquisition of ETC Group will allow Bitwise to strengthen its position in the digital asset market and manage significant volumes of assets, facilitating the company's further growth.
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