Bitwise Cuts 14% Staff Amid Prolonged Crypto Slump
Bitwise Asset Management laid off 14% of its workforce, reducing to 155 employees, amid a prolonged crypto market downturn. CEO Hunter Horsley remains optimistic, citing the firm's largest-ever headcount post-cuts. The $9 billion asset manager's Bitcoin ETF holds $2.3 billion, a fraction of market leader BlackRock's $47.3 billion IBIT.
Quick Take
Bitwise cut ~25 jobs, reducing staff to 155, yet remains the firm's largest workforce ever.
Bitcoin has fallen nearly 50% from its October 2025 peak to around $64,000.
Retail investors are migrating from crypto spot trading to prediction markets and AI stocks.
CIO Matt Hougan sees the market potentially at its bottom, favoring ETF-held Bitcoin.
Market Impact Analysis
NeutralLayoffs at a relatively small ETF issuer amid industry retrenchment reflect ongoing bearish sentiment but are unlikely to materially move markets.
Speculation Analysis
Key Takeaways
- Bitwise cut ~14% of staff to 155 employees, yet CEO Hunter Horsley says it’s the firm’s largest workforce ever.
- Bitcoin has plunged nearly 50% from its October 2025 record, now hovering around $64,000.
- Retail money is fleeing spot crypto for prediction markets, with record $113.8B volume in Q2.
- CIO Matt Hougan hints the market may be near a bottom, favoring ETF-held Bitcoin.
What Happened
Bitwise Asset Management laid off roughly 14% of its workforce, cutting headcount from about 180 to 155. The San Francisco-based crypto asset manager confirmed the move to Bloomberg, with CEO Hunter Horsley noting that even after the reduction, the team is the largest in the firm’s eight-year history. He expects growth to resume as crypto adoption widens.
Bitwise oversees $9 billion in client assets across more than 70 products, including a $2.3 billion spot Bitcoin ETF (BITB). However, it remains a small player in a market dominated by BlackRock’s $47.3 billion IBIT and Fidelity’s $10.9 billion FBTC.
The Numbers
Bitwise trimmed its staff by roughly 25 people. Meanwhile, Bitcoin has fallen close to 50% from its all-time high of October 2025, trading near $64,000. The broader crypto market cap dropped 12.6% in the second quarter.
Retail flows are shifting: prediction market notional volume surged 48.7% to a record $113.8 billion, while spot volume on the ten largest centralized exchanges fell 27.9% to $1.95 trillion. US spot Bitcoin ETFs now hold $77.5 billion in net assets, led overwhelmingly by BlackRock.
Why It Happened
The layoffs reflect a prolonged crypto slump. Bitcoin’s nearly 50% drawdown over ten months has sapped retail enthusiasm. Investors are diverting capital to prediction markets—dubbed “retail’s shiny new toy” by Barclays—and AI stocks. Wintermute data shows a steady rotation from crypto to equities since late 2024.
Bitwise joins a growing list of firms cutting costs. Coinbase slashed 14% in May, FalconX cut 10% in August, and exchanges BitMEX and BitMart are shutting down entirely. The industry is consolidating, leaving smaller players vulnerable.
Broader Impact
The cutbacks highlight deepening consolidation in crypto asset management. Giants like BlackRock absorb the bulk of ETF inflows, squeezing out smaller issuers. The shift from spot trading to prediction markets may become permanent, forcing platforms to diversify or fold. Regulatory scrutiny of prediction markets could intensify as volumes explode.
What to Watch Next
- More layoffs or mergers among crypto fund managers as the bear market drags on.
- Bitcoin price action around $60,000—will Hougan’s bottom call prove accurate?
- Regulatory pushback against prediction markets given record volumes.
This article is for informational purposes only and does not constitute financial advice.
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