Bitwise Cuts 14% of Staff Amid Crypto Market Downturn, CEO Still Expects Growth
Key Takeaways
- •Bitwise eliminated approximately 25 positions, reducing its San Francisco-based workforce from roughly 180 to 155 employees.
- •A company spokesperson attributed the layoffs to a broader cryptocurrency market downturn.
- •CEO Hunter Horsley stated that Bitwise still expects growth despite the staff reductions.
- •Multiple crypto firms, including Coinbase, BitGo, and the Ethereum Foundation, have announced workforce reductions in 2026 for various strategic and market-related reasons.
- •Shares of the Bitwise 10 Crypto Index Fund have declined by more than 30% since the beginning of the year.
Digital asset manager Bitwise, known for its spot Bitcoin ETF (BITB) and a suite of crypto index products, has laid off approximately 25 employees, reducing its workforce by 14% from roughly 180 to 155 people at its San Francisco headquarters.
A Bitwise spokesperson confirmed the staff cuts to Cointelegraph on Wednesday, attributing the decision to a broader cryptocurrency market downturn.
Bloomberg previously reported that Bitwise CEO Hunter Horsley stated the company still anticipates growth as crypto "further integrates into the global economy." In February, Bitwise acquired Chorus One in a deal expected to expand its staking services.
Bitwise is the latest in a series of crypto industry companies to announce workforce reductions in 2026. Robinhood, Polygon, Pump.fun, and others have all implemented similar cuts this year, citing reasons ranging from shifting toward artificial intelligence to broader market forces. The wave of cuts underscores that even firms that successfully launched regulated investment products like spot ETFs are not insulated from the market pressures affecting the sector.
In June, BitGo co-founder and CEO Mike Belshe announced a "one-time action" as the company reduced 15% of its staff to refocus on AI and stablecoins. Coinbase similarly cited an AI strategy shift in May when it planned to cut 14% of its workforce. The Ethereum Foundation also eliminated 20% of its staff amid a strategic restructuring.
Since January, shares of the Bitwise 10 Crypto Index Fund (BITW) have declined by more than 30%. The fund tracks the ten largest cryptocurrencies by market capitalization, including Bitcoin (BTC) and Ether (ETH).
