Bitwise Cuts Staff Amid Crypto Downturn but Expects Continued Growth

Bitwise, a San Francisco-based digital assets company, has cut 14% of its staff due to the ongoing downturn in cryptocurrency prices. According to Bloomberg News, the company reduced its workforce from around 180 employees to roughly 155.

Despite the layoffs, Bitwise's CEO Hunter Horsley stated that the company's staffing levels are at their highest point to date and that they expect growth to continue as crypto becomes more embedded in the world economy. The company offers a range of crypto products, including exchange-traded funds, private funds, and separately managed accounts.

Bitwise oversees around 70 products and commands about $9 billion in assets, with its most popular product being a $2.3 billion Bitcoin ETF. However, the cryptocurrency sector is facing significant challenges, including a nearly year-long downturn in prices. Bitcoin, the most popular form of crypto, has dropped by nearly half to around $64,000 since its record high in October.

Several other crypto companies, such as Coinbase and FalconX, have also cut staff, while BitMEX and Bitmart announced shutdowns last month. The sector is also facing a shift in investor interest, with retail investors moving their money from crypto into sports betting sites and AI companies.