According to reports from The Block, Bitwise Asset Management has reduced its global workforce by approximately 14% during a crypto market downturn. The San Francisco-based firm now employs around 155 people, down from nearly 180 employees previously. CEO Hunter Horsley confirmed the layoffs in an emailed statement, stating the staff reduction was completed last week and leaves the company positioned to continue expanding its business. Horsley emphasized that the adjustment "equips us well for the ongoing growth we've seen this year and expect to continue as crypto further integrates into the global economy." The restructuring affected roughly 25 positions as the company navigates extended weak market conditions that have pressured asset prices, investment activity and revenue across the cryptocurrency sector. As per The Block, the cuts come amid a prolonged decline in the cryptocurrency market, which has put pressure on asset managers.
The workforce reduction comes as Bitwise faces significant financial headwinds in its core investment products. According to The Block, the Bitwise 10 Crypto Index Fund (BITW) recorded a 31% drop in net assets during the first seven months of 2026. This decline in the company's flagship crypto index fund provides a clear measure of how the prolonged downturn has affected investment products tied directly to crypto prices. Declining asset values can reduce the management fees earned by asset managers, potentially forcing companies to reconsider expenses and staffing levels. Despite these challenges, Bitwise has continued launching new products, with the company's Hyperliquid exchange-traded fund recording approximately $19 million in inflows during a single trading day in May, generating roughly $22 million in trading volume. The company has also recently linked part of the revenue from its new Hyperliquid-based exchange-traded fund to the HYPE token, with plans to use a portion of the ETF's management fees to buy and stake the asset.
Despite workforce cuts, Bitwise has continued expanding through strategic acquisitions to strengthen its institutional crypto services. In February, the asset manager completed its acquisition of Chorus One, an institutional staking provider supporting more than 30 proof-of-stake networks, expanding its staking operations beyond core crypto investment products. The deal allowed the company to offer a broader range of services to institutional clients and reflected efforts to diversify beyond traditional crypto funds and exchange-traded products. Bitwise's XRP exchange-traded products in the U.S. and Europe collected more than $200 million in inflows since the beginning of 2026, demonstrating strong demand for altcoin products. This acquisition strategy follows a period where Bitwise has been adding businesses and launching investment vehicles while managing the effects of lower crypto prices.
The Bitwise reductions represent part of a broader pattern across the cryptocurrency industry throughout 2026. Coinbase cut about 700 jobs, roughly 14% of its staff, in May, with CEO Brian Armstrong citing market conditions and artificial intelligence as factors. Gemini reduced headcount by approximately 30% earlier this year, while Bitcoin miner MARA cut 15% of staff in April. Other notable layoffs include Dune cutting 25% of workers, Polygon Labs conducting a second round of cuts in July while completing its acquisition of Coinme, and Robinhood reducing its workforce by 10% in June. BitGo also cut nearly 15% of its workforce in June, while Kraken reportedly cut around 150 positions in May. Market participants are reassessing costs amid falling digital asset prices while increasingly adopting artificial intelligence to automate parts of their operations. The repeated layoffs show how crypto companies are attempting to preserve capital and operate with leaner teams while waiting for market activity to recover.
Despite the workforce reduction, Bitwise maintains an optimistic outlook on crypto market recovery. Chief Investment Officer Matt Hougan told Bloomberg that Bitcoin's ability to hold up despite recent negative developments could mean the bear market has already reached its bottom. Hougan argued that Bitcoin's resilience in the face of negative developments, including delays involving the CLARITY Act and Strategy's Bitcoin sales, suggests much of the selling pressure has already been priced in. Hougan expects large wealth management platforms to become the "quiet catalyst" behind the next crypto bull market, with wider adoption by financial advisers and their clients potentially introducing substantial new capital to digital assets without attracting the same immediate attention as retail-led speculation. This strategic positioning aligns with Bitwise's continued expansion through acquisitions and new product launches, even as the company manages the effects of lower crypto prices on its existing portfolio. Against this backdrop, Bitwise also expects cryptocurrencies to become increasingly integrated into the traditional financial system.
