Bitwise Asset Management Cuts 14% of Workforce Amid Extended Crypto Market Downturn

Bitwise Asset Management has reduced its workforce by approximately 14%, lowering its headcount from around 180 employees to roughly 155, according to a company statement. The move comes as a prolonged downturn in digital asset markets continues to pressure firms across the cryptocurrency sector.

The San Francisco–based asset manager, founded in 7, currently oversees $9 billion in assets across more than 70 investment products, including its flagship Bitwise 10 Crypto Index Fund and a range of industry-specific index funds. The company is widely recognized as one of the earliest firms to pursue a physically backed Bitcoin exchange-traded fund (ETF) in the United States, and was among the cohort of issuers that received SEC approval to launch a spot Bitcoin ETF in January 2024—a milestone that had been expected to accelerate institutional adoption across the sector.

Bitwise CEO Hunter Horsley noted that despite the layoffs, the company still employs more people than at any other point in its eight-year history. Horsley expressed optimism about the firm's trajectory, stating that Bitwise expects continued growth as cryptocurrency becomes more deeply embedded in the global financial system. The cuts at a firm that had been expanding aggressively following the ETF approvals underscore the gap between the adoption timelines many firms projected and current market realities.

Bitwise joins a growing roster of digital asset companies that have trimmed staff in response to challenging market conditions. Coinbase, Gemini, and FalconX have all implemented headcount reductions, while several long-standing crypto firms have announced shutdowns or restructuring efforts.

Digital assets have struggled to regain momentum after many cryptocurrencies reached record highs in late 2025. Geopolitical uncertainty, particularly surrounding US–Iran tensions, has compounded the pressure on markets. Meanwhile, retail traders appear to be redirecting capital toward sports betting platforms and artificial intelligence–related equities rather than cryptocurrency.

The industry is also awaiting clearer policy catalysts. Comprehensive US cryptocurrency legislation remains stalled in the Senate, and there has been little public progress on the proposed US Strategic Bitcoin Reserve, an initiative that has been a subject of ongoing debate among lawmakers and industry advocates. For asset managers like Bitwise, regulatory clarity—particularly around additional ETF products for tokens beyond Bitcoin and Ether—remains a key variable shaping their ability to broaden their product lineup and attract new capital.

Source: CryptoNews