Bitwise Asset Management has cut 14% of its workforce, reducing its global team to approximately 155 employees as the crypto asset manager navigates a prolonged market downturn. The layoffs, which removed roughly 25 positions from a team of 180, were confirmed by the company's CEO in an emailed statement.
The CEO said the staff reduction was completed last week and leaves the company positioned to continue expanding its business. He described the adjustment as one that equips the firm well for ongoing growth as crypto further integrates into the global economy.
Falling Assets Weigh on Products
Market conditions have put pressure on some of the products managed by the firm. The Bitwise 10 Crypto Index Fund, which provides exposure to a basket of major cryptocurrencies, recorded a 31% drop in net assets during the first seven months of 2026. That decline is one measure of how the prolonged downturn has affected investment products tied directly to crypto prices.
The asset decline in the index fund mirrors broader weakness across the crypto market. Bitcoin has traded in a narrow range near $63,000 to $66,000 for weeks, while many altcoins have struggled to maintain momentum. The downturn has affected not just product performance but also the fee revenue that asset managers depend on.
Continued Product Expansion Despite Cuts
Bitwise has continued launching and operating products despite the weaker market. The company's Hyperliquid exchange-traded fund recorded approximately $19 million in inflows during a single trading day in May, its largest daily inflow at the time. The fund launched on the New York Stock Exchange with a 0.34% sponsor fee, which was waived for the first month.
Demand has also emerged for some of the company's other altcoin products. The firm's XRP exchange-traded products in the U.S. and Europe collected more than $200 million in inflows since the beginning of 2026, even as falling digital asset prices weighed on parts of its existing portfolio.
Acquisitions Continue Through the Downturn
Alongside its fund business, Bitwise has used acquisitions to add services for institutional crypto investors. In February, the asset manager completed its acquisition of an institutional staking provider, expanding its staking operations at a time when the company was continuing to build services beyond its core crypto investment products.
The workforce reduction therefore follows a period in which Bitwise has been adding businesses and launching investment vehicles while managing the effects of lower crypto prices. The company's CIO has suggested that Bitcoin may have already bottomed and expects large wealth management platforms to support the next bull market.
Crypto Layoffs Continue Through 2026
Bitwise is not alone in reducing headcount. Crypto custody and infrastructure company BitGo cut nearly 15% of its workforce in June as it redirected resources toward security, trading, stablecoins, settlement, and artificial intelligence infrastructure. That reduction, based on the firm's reported headcount, represented roughly 90 positions.
The pattern of layoffs across the industry reflects a broader contraction as companies adjust to a market that has failed to sustain the momentum of early 2026. While some firms are using the downturn to build and acquire, others are being forced to contract. The tension between expansion and consolidation is shaping the competitive landscape of the crypto industry in ways that will outlast the current downturn.
The crypto-friendly bank Erebor raised capital amid the same market conditions, showing that investor interest in crypto infrastructure remains even as operating companies face pressure. Whether Bitwise's bet on continued growth through acquisitions and new products pays off will depend on when the market eventually turns.
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