Bitwise cuts 14% of workforce amid prolonged crypto downturn
Macro & Markets ·
The San Francisco-based ETF and fund issuer trimmed its staff as sustained pressure on digital asset markets weighs on institutional crypto firms.
Bitwise Asset Management laid off 14% of its employees, according to Bloomberg, which cited a prolonged slump in digital asset markets as the driver behind the reduction. The cuts were also reported by The Block, with four distinct sources covering the development.
Bitwise operates as a pure-play crypto asset manager, building ETFs, tokenized funds, and other regulated products that give pension funds, RIAs, family offices, and retail investors exposure to digital assets without requiring them to hold assets directly. Its lineup includes the spot Bitcoin ETF BITB, the Hyperliquid-linked BHYP, and the USCC tokenized carry fund, positioning the firm alongside larger, diversified issuers like BlackRock and Fidelity in the spot ETF market — though Bitwise's business is concentrated entirely in crypto, leaving it more exposed than multi-asset competitors when digital asset markets contract.
The layoffs land amid a broader wave of workforce reductions across the crypto industry tied to the extended market downturn, according to reporting in the same cluster. Some coverage also points to AI implementation as a contributing factor alongside market conditions, though the extent of that role relative to the downturn itself is not detailed.
The cuts stand in contrast to a string of product expansions Bitwise has pursued in recent months, including the BHYP Hyperliquid ETF launched on the NYSE, an AVAX ETF listing, and growth in its USCC fund past $120 million in deposits after integration with Aave's Horizon platform, all cataloged on the firm's Bitwise profile. That expansion suggests the layoffs reflect cost pressure tied to market conditions rather than a pullback from product development.
What remains unclear is which teams or functions were affected by the reduction, whether further cuts are planned if the downturn persists, and how the staffing reduction will affect the pace of Bitwise's ongoing product rollouts. Also unresolved is the precise weighting between market pressure and AI-driven efficiency changes cited across differing accounts of the layoffs.