Bitwise Cuts 14% Staff, Exits 8 ETFs, Yet Aggressively Launches New Crypto Products Amid Asset Volatility

Woofun AI reports that Bitwise has executed a complex strategic pivot, simultaneously reducing its workforce by 14% and liquidating eight ETFs while aggressively launching new crypto products, a move confirmed by CEO Hunter Horsley as part of a broader restructuring effort.

The structural adjustment was detailed in a Bloomberg report on August 12, revealing that Bitwise's headcount has dropped from approximately 180 to around 155, translating to about 25 fewer positions when calculated using these approximate figures. The company did not disclose which specific departments were affected, what compensation plans were in place, or any future adjustment strategies. Hunter Horsley, Bitwise's CEO, stated in his response that the revised team remains the largest in the company's eight-year history, signaling that the reduction is a calibration rather than a contraction, as he expects the firm to continue growing as crypto assets become more integrated into the global economy.

This staffing optimization mirrors a broader industry trend where competitors are also right-sizing their operations. Coinbase laid off around 700 employees in May, accounting for 14% of its global workforce, citing market fluctuations, cost control, and organizational restructuring driven by AI as reasons. Dune, an on-chain data platform, reduced its staff by 25% in the same month, with its CEO also mentioning AI-driven efficiency improvements. BitGo cut 15% of its workforce in June, focusing resources on security, trading, stablecoins, settlement, and AI infrastructure. Bitwise has not yet revealed the specific reasons behind this round of layoffs, nor has it attributed them to AI, leaving it unclear whether there is any organizational connection between these layoffs and the product adjustments.

Financial metrics preceding these staffing changes indicated significant volatility in asset reporting. In a product announcement on February 3, Bitwise claimed its client assets exceeded $15 billion; however, another announcement on May 1 indicated that as of April 1, client assets were $11 billion. Based on these two self-reported figures, the discrepancy amounts to at least $4 billion. Bitwise did not explain how much of this change was due to fluctuations in cryptocurrency prices, fund inflows and outflows, or differences in the scope of statistics, creating a gap in transparency regarding the firm's underlying asset stability during this period.

Client assets are a metric influenced by both market prices and capital flows—rising or falling prices can alter the market cap of assets, while customer purchases and withdrawals can change the number of managed shares, and the addition or termination of products can affect the statistical scope. Since the data from these two periods cannot isolate the impact of each factor, it is impossible to determine exactly how much of the $4 billion decrease was caused by net customer redemptions. Bitwise's business includes ETFs, private funds, separately managed accounts, staking services, and on-chain investment products. The charging standards and calculation bases for these different products vary, and the company has not disclosed any changes in the composition of these assets between the two reporting periods.

Woofun AI data shows that product exits occurred almost simultaneously with the asset reporting shifts. On April 30, the board of directors of Bitwise Funds Trust decided to liquidate Bitwise Web3 ETF and Bitwise Trendwise BTC/ETH and Treasuries Rotation Strategy ETF. These two funds stopped trading in May and were fully liquidated. The first two funds focused on Web3-themed stocks and strategies involving rotations between Bitcoin, ETH, and Treasury bonds, respectively,

The liquidation campaign continued with a second wave. On June 30, the board decided to liquidate six more options-based ETFs, with underlying assets related to Coinbase, MARA, Strategy, GameStop, Circle, and Ethereum. These funds ceased trading in August and their liquidation proceeds were distributed. Within about three months, Bitwise exited eight ETFs. The latter six generated returns through single-stock investments or ETH-related options,

Although these eight products had different investment strategies, they all required ongoing support in terms of trading, compliance, valuation, and information disclosure. Liquidation helps reduce the number of products that need maintenance, but its impact on revenue still depends on the asset size and expense ratio of each fund before liquidation.

During the period when these eight ETFs were withdrawn, Bitwise continued to develop new products, In April, the company launched an Avalanche ETP in the European market, featuring internal staking arrangements; in May, the Hyperliquid ETF was launched; and in June, Bitwise took over the Crypto Carry Fund managed by Superstate, whose value exceeded $267 million, thereby entering the field of tokenized fund management. These new products also generate demands for custody, staking, compliance, and distribution services, so changes in product focus do not necessarily mean a reduction in overall operational burdens,

In a statement released on June 30, Bitwise said it offers 70 investment products, serving more than 5,500 private wealth management teams, registered investment advisors, and family offices, and collaborating with over 20 banks and brokerage firms. With the headcount reduced from 180 to 155, the remaining products will be managed by a smaller team,