Bitwise Asset Management has reduced its workforce by approximately 14%, bringing total headcount to around 155, just six months after acquiring staking infrastructure provider Chorus One and growing its team to roughly 200.

Chorus One Acquisition Expanded Staking Capabilities

Bitwise completed its acquisition of Chorus One on February 24, a deal that added more than $2.2 billion in staked assets and 50 technology professionals. Staking — the process by which token holders lock up assets to help validate transactions on proof-of-stake blockchains in exchange for rewards — has become a significant revenue vertical for institutional crypto firms as networks like Solana and Avalanche have grown. The acquisition extended Bitwise's operations across more than 30 proof-of-stake networks, including Solana, Avalanche, Sui, and Aptos.

CEO Hunter Horsley described staking as "one of the most compelling growth opportunities" for clients holding crypto assets and praised Chorus One's "eight-year track record of doing things the right way."

Chorus One was integrated into Bitwise Onchain Solutions, the company's dedicated staking division. At the time the deal closed, Bitwise reported a company-wide headcount of approximately 200.

Headcount Declines as Index Fund Contracts

Six months after the acquisition, Bitwise's headcount stands at approximately 155. Before the most recent round of cuts, the figure was around 180, meaning last week's reduction affected about 25 positions. In total, Bitwise has reduced its workforce by roughly a quarter since February.

The staff reductions come as the firm's flagship product faces significant outflows. Net assets of the Bitwise 10 Crypto Index Fund (ticker: BITW) declined 48.27%, falling from $1.03 billion to $532.8 million during the first half of 2026, according to a quarterly filing with the SEC. BITW, a publicly traded crypto index fund, faces competition from spot Bitcoin and Ethereum ETFs that launched in the United States in 2024, which offer investors single-asset exposure with typically lower fees and greater tax efficiency than pooled trust structures.

Investors redeemed $161.2 million while creating only $3.5 million in new shares. Shares outstanding fell 18.97%, indicating that capital was withdrawn rather than simply losing market value.

Bitcoin's weighting within the fund increased from 75.11% to 77.81% as of June 30, meaning a product marketed as a ten-cryptocurrency basket is now concentrated at more than three-quarters in a single asset — a drift that could undermine the fund's diversification appeal relative to single-asset ETFs.

Leadership Defends Restructuring

Horsley confirmed the staff reductions in an emailed statement. The adjustment "equips us well for the ongoing growth we've seen this year and expect to continue as crypto further integrates into the global economy," he said.

Chief Investment Officer Matt Hougan stated that bitcoin has likely reached the bottom of the current bear market, citing the asset's diminished response to negative events. He pointed to the Coldcard hack, selling by Strategy, and disappointment over the CLARITY Act — proposed U.S. legislation aimed at establishing a regulatory framework for digital asset markets — as developments that failed to drive prices lower.

Hougan reinforced that assessment on X hours before the layoffs were reported on August 12:

"It's true."
— Matt Hougan (@Matt_Hougan) August 12, 2026

Broader Industry Contraction

Bitwise is not alone in trimming staff. Coinbase laid off approximately 700 employees, or 14% of its workforce, in May as CEO Brian Armstrong pursued an AI-first restructuring toward smaller teams. BitGo reduced its staff by 15% in June, and Polygon Labs has cut personnel for the second time this year.

By late July, 17 major crypto ventures had ceased operations, with approximately 95 total shutdowns recorded across the industry in 2026 — a pace that surpasses the wave of collapses seen during the 2022–2023 downturn that followed the failures of FTX, Celsius, and BlockFi.