Bitwise Slashes Workforce Amid Crypto Downturn
Bitwise Asset Management, a San Francisco-based crypto asset manager, has cut its workforce by 14% to around 155 employees. This move is part of the company's efforts to adjust to the prolonged downturn in digital asset markets.
The layoffs come as the firm's flagship product faces significant pressure, with net assets in the Bitwise 10 Crypto Index Fund falling 31% during the first seven months of 2026. Additionally, a separate SEC filing showed an even steeper decline of 48.27% in the first half of the year.
Despite this, Bitwise has continued its expansion strategy, including the acquisition of Chorus One in February 2026, which added over $2.2 billion in staked assets and 50 technology professionals to the company. The firm has also reported demand for selected exchange-traded products, with its Hyperliquid ETF recording approximately $19 million in one-day inflows during May.
Bitwise Chief Investment Officer Matt Hougan expressed a relatively upbeat outlook for the market, citing Bitcoin's ability to absorb negative news as evidence that the bear market may have reached its floor. However, the company is also preparing for the next cycle, with Horsley saying that 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.'