Forward Guidance Newsletter Segment

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Bitwise, a major crypto asset manager, has raised $70 million to expand its offerings amidst growing institutional interest and a more open SEC. CEO Hunter Horsley anticipates increasing their workforce from 100 to about 130 this year.

The company plans to introduce more ETFs and custom solutions across three investment categories:
1. Beta Offerings: This includes well-known products like the crypto index fund and bitcoin and ether ETFs.
2. Onchain Solutions: The firm offers non-custodial institutional staking following its acquisition of Attestant in November.
3. Alpha Strategies: These involve custom Separate Managed Accounts (SMAs) for institutional clients.

Horsley mentioned rising interest among bitcoin holders in making their holdings productive and generating yield. Bitwise has proposals with the SEC to launch new ETFs incorporating assets beyond Bitcoin and Ethereum. If their Bitwise 10 Crypto Index Fund is approved for uplisting, it would be a key development, marking the first crypto index fund launched in 2017.

Horsley believes that investors will prefer index solutions over multiple single-coin ETFs as they seek diversification. He noted that post-Trump’s inauguration, discussions with the SEC have been “more constructive” and reflect a significant change in their approach. Although he did not comment on timelines for approvals of new ETFs, he highlighted the SEC’s openness to a broader range of crypto assets.