Key Takeaways
- • Bitwise Asset Management completed a $70 million Series B funding round co-led by tech investor Elad Gil and crypto venture fund Electric Capital, valuing the company at $500 million-plus.
- • The round attracted prominent institutional and individual investors including Third Point LLC (Daniel Loeb), Willoughby Capital (Daniel Och), Moore Strategic Ventures (Louis Bacon), Coinbase Ventures, and notable figures such as Stanley Druckermiller, Henry Kravis, and former Federal Reserve Governor Kevin Warsh.
- • Bitwise's assets under management surged more than 20x year-over-year to $1.2 billion as of Q1 2021, with the company achieving profitability ahead of the capital raise.
- • The cryptocurrency index fund manager plans to deploy proceeds to strengthen its balance sheet, expand its team and product offerings, and accelerate its national buildout to serve professional investors and financial advisors.
- • The funding validates Bitwise's positioning as a premier crypto asset manager for institutional clients seeking professional-grade custody, advisory, and index fund solutions across cryptocurrency and blockchain investments.
Summary
Bitwise Asset Management, the world's largest cryptocurrency index fund manager, announced the completion of its $70 million Series B funding round, achieving a post-money valuation exceeding $500 million. The round was co-led by renowned tech investor Elad Gil and Electric Capital, a specialized cryptocurrency venture fund, signaling strong confidence in Bitwise's institutional-focused business model and market position.
The investor roster reflects a convergence of Wall Street institutional capital and cryptocurrency-native venture expertise. Institutional backers included Third Point LLC (founded by Daniel Loeb), Willoughby Capital (Daniel Och), and Moore Strategic Ventures (Louis Bacon), alongside Coinbase Ventures. The syndicate also included individual investors from prominent financial institutions: Stanley Druckermiller, Henry Kravis (Kohlberg Kravis Roberts), David McCormick (CEO of Bridgewater Associates), Daniel Sundheim (Chief Investment Officer of D1), former Federal Reserve Governor Kevin Warsh, Nadeem Meghji (Blackstone executive), and Tracey Warson (former Head of Citi Private Bank). Technology sector participants included Fidji Simo (Facebook executive) and Helen Riley (Google X CFO). Existing backers including Highland Capital, Khosla Ventures, Blockchain Capital, and Castle Island Ventures also participated in the round.
Bitwise demonstrated remarkable growth metrics preceding the raise. Assets under management expanded more than 20-fold year-over-year, crossing $1.2 billion by the end of Q1 2021, while the company achieved profitability—a rare achievement for cryptocurrency asset managers at this scale. CEO Hunter Horsley articulated the company's institutional strategy, stating that over the five-year horizon, long-term investors will increasingly rely on established financial advisors and brokerages for cryptocurrency exposure, mirroring traditional asset class distribution models. Bitwise positions itself as the enabling infrastructure for this transition.
The company intends to deploy Series B proceeds toward three primary objectives: strengthening its balance sheet, expanding organizational headcount and capabilities, and accelerating product development across its beta, alpha, and onchain solutions. This capital deployment strategy reflects Bitwise's ambition to deepen relationships with professional investors, financial advisors, and institutional asset managers seeking regulated, custody-backed cryptocurrency investment vehicles—a market segment that has gained significant institutional attention in 2021.
The investor roster reflects a convergence of Wall Street institutional capital and cryptocurrency-native venture expertise. Institutional backers included Third Point LLC (founded by Daniel Loeb), Willoughby Capital (Daniel Och), and Moore Strategic Ventures (Louis Bacon), alongside Coinbase Ventures. The syndicate also included individual investors from prominent financial institutions: Stanley Druckermiller, Henry Kravis (Kohlberg Kravis Roberts), David McCormick (CEO of Bridgewater Associates), Daniel Sundheim (Chief Investment Officer of D1), former Federal Reserve Governor Kevin Warsh, Nadeem Meghji (Blackstone executive), and Tracey Warson (former Head of Citi Private Bank). Technology sector participants included Fidji Simo (Facebook executive) and Helen Riley (Google X CFO). Existing backers including Highland Capital, Khosla Ventures, Blockchain Capital, and Castle Island Ventures also participated in the round.
Bitwise demonstrated remarkable growth metrics preceding the raise. Assets under management expanded more than 20-fold year-over-year, crossing $1.2 billion by the end of Q1 2021, while the company achieved profitability—a rare achievement for cryptocurrency asset managers at this scale. CEO Hunter Horsley articulated the company's institutional strategy, stating that over the five-year horizon, long-term investors will increasingly rely on established financial advisors and brokerages for cryptocurrency exposure, mirroring traditional asset class distribution models. Bitwise positions itself as the enabling infrastructure for this transition.
The company intends to deploy Series B proceeds toward three primary objectives: strengthening its balance sheet, expanding organizational headcount and capabilities, and accelerating product development across its beta, alpha, and onchain solutions. This capital deployment strategy reflects Bitwise's ambition to deepen relationships with professional investors, financial advisors, and institutional asset managers seeking regulated, custody-backed cryptocurrency investment vehicles—a market segment that has gained significant institutional attention in 2021.
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