#What Is the Significance of Bitwise Asset Management's Acquisition?
Bitwise Asset Management, a notable player in the crypto asset management arena with over $15 billion in client assets, has recently announced its acquisition of Chorus One, a staking infrastructure provider established in 2018. This strategic move significantly enhances Bitwise’s portfolio by adding more than $2.2 billion in staked assets.
Chorus One will integrate into Bitwise Onchain Solutions, which focuses on institutional staking. Together, they will provide staking services across over 30 proof-of-stake networks, thereby expanding Bitwise's offering. Additionally, the integration will bring 50 new technology specialists on board, enhancing their capabilities.
Staking has emerged as an essential growth opportunity for holders of spot crypto assets, catering to thousands of clients. Infrastructure developed by Chorus One supports various prominent blockchain ecosystems, such as Solana, Avalanche, Sui, NEAR, Aptos, Tezos, and TON. Their diverse client base includes investment funds, exchanges, custodians, and decentralized protocols.
Following the acquisition, Brian Crain, CEO of Chorus One, will transition to an advisory role as the technical teams merge. This consolidation effectively positions Bitwise to take advantage of the increasing institutional demand for yield-generating crypto strategies, especially since the recent approval of spot crypto exchange-traded funds by U.S. regulators has driven many asset holders to seek returns on idle digital currencies.
Bitwise, which began operations in 2017 as a pioneer in crypto index funds, has evolved to become a vertically-integrated firm that covers ETFs, blockchain infrastructure, and staking services. The team has also expanded to nearly 200 employees in light of this acquisition.
Earlier this month, Bitwise took steps to enhance its offerings by collaborating with Kraken Institutional to launch a tailored yield strategy for managed crypto portfolios.