Crypto Gloss

Bitwise Asset Management

Bitwise Asset Management is a San Francisco-based specialist crypto asset manager founded in 2017 by Hunter Horsley, Hong Kim, and Matt Hougan. Bitwise built its reputation on two pillars: producing rigorous research on crypto market structure that earned credibility with institutional investors, and creating regulated access vehicles for crypto exposure including index funds and ETFs. Bitwise launched BITB (the Bitwise Bitcoin ETF) on January 11, 2024, as part of the first cohort of spot Bitcoin ETF approvals by the SEC.

Background

Bitwise was one of the earliest asset managers to pursue regulated crypto investment products for institutional and RIA (registered investment advisor) clients. The firm gained significant visibility in 2019 when it submitted a 226-page research report to the SEC as part of its Bitcoin ETF application, arguing that Bitcoin markets were mature, manipulated-free, and suitable for an ETF. Though that application was rejected, the report became widely read as one of the most thorough defenses of Bitcoin’s market structure.

Leadership

  • Hunter Horsley — CEO, co-founder; previously at Facebook
  • Matt Hougan — Chief Investment Officer; previously CEO of Inside ETFs, an ETF education and conference company
  • Hong Kim — CTO, co-founder; technical infrastructure
  • David Lawant — Head of Research; publications and institutional strategy

Products

Product Description
BITB Spot Bitcoin ETF (launched Jan 11, 2024)
BITW Bitwise 10 Crypto Index Fund (OTC, private)
AETH Bitwise Ethereum ETF
Separately Managed Accounts Custom crypto allocations for large institutional clients
Crypto Research Reports Annual institutional reports including “The Case for Crypto in a Portfolio”

Research Contributions

Bitwise publishes some of the most widely-cited research in institutional crypto:

  • “The Real Volume” Report (2019) — analyzed fake trading volume on crypto exchanges, finding that 95%+ of reported volume on most exchanges was wash-traded, while the “real” order-book driven volume was concentrated on a small number of legitimate venues
  • “The Case for Crypto” series — annual reports used by RIAs to justify crypto allocations
  • Crypto Market Review — quarterly performance and flow data widely referenced by financial media

Related Terms

Sources