Bitwise completes a $70 million equity raise led by Electric Capital with participation from MassMutual and others, highlighting institutional acceptance of crypto as a legitimate asset class.
By Mayowa Adebajo
Edited by Marco T. Lanz
Updated
2 mins read
Bitwise Asset Management has further demonstrated growing institutional interest in cryptocurrency investments by successfully closing a $70 million equity round led by Electric Capital.
The round also witnessed participation from notable firms, including MassMutual, Highland Capital, MIT Investment Management Company, and many others. However, what really stood out from the raise is the way that it shows that institutions may now be warming up to crypto assets as a legitimate alternative asset class. As Bitwise CEO Hunter Horsley put it in a press release statement:
“Crypto is coming into its own as an increasingly institutional and unique alternative asset class.”
Without gainsaying, this huge amount of investment in Bitwise is nothing but a little part of a much bigger trend. Recently, traditional financial institutions have been embracing cryptocurrencies, including those that were once critical of it.
Citadel Securities, for instance, was once popular for its sceptical view of digital currencies. However, not long ago, it announced plans to enter the crypto market-making space, sharing that it aims to provide liquidity on major exchanges such as Coinbase, Binance, and Crypto.com.
Canary Capital is another asset manager who may have shown interest in crypto, even beyond the well-known Bitcoin. Coinspeaker previously reported about Canary Capital filing for an exchange-traded fund (ETF) that will track the spot price of Solana last October.
Bitwise claims that it aims to build on the success of 2024 that saw its client assets surge over tenfold to surpass $12 billion. That is, across its beta, alpha, and on-chain solutions. So, using the fresh fund, the firm believes that it can easily achieve its aims for the new year.
Bitwise’s strategy, however, would be to divide the fund into parts that will cater to improving its balance sheet as well as expand its investment capabilities and investor solutions.
The firm currently operates from offices in San Francisco, New York, and London with a team of over 100 experts, with plans to grow to more than 130 employees this year. Bitwise offers 32 investment solutions that include yield and alpha strategies, multi-strategy products, separately managed accounts, on-chain staking, and index funds.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
