Bitwise Raises $70 Million to Support Crypto as an Asset Class #CriptoNews

Cryptocurrency-focused asset manager Bitwise completed a $70 million equity raise.

The funding round, led by Electric Capitalwill help Bitwise bolster its balance sheet and develop new investment capabilities and investor solutions, according to a Tuesday (Feb. 25) news release.

“Following the path charted by private equity, private credit and high-yield bonds, crypto is coming into its own as an increasingly institutional and unique alternative asset class,” Bitwise CEO Hunter Horsley said in the release. “We’re proud to have been a reliable partner to clients for the last seven years, and we are building the firm to be the best partner to clients for decades to come. We are excited to have the backing of new and existing investors who share our vision.”

Bitwise saw “tremendous” growth in 2024, with a tenfold increase in client assets to more than $12 billion across the company’s three chief business lines, beta, alpha and onchain solutionsthe release said.

The funding round comes amid a hectic time for the crypto world, with regulators withdrawing their cases against high-profile exchanges and lawmakers calling for better digital assets legislation to bring more innovation to the sector.

Rep. French Hill of Arkansas, chairman of the House Financial Services Committee (HFSC), and Rep. Bryan steep of Wisconsin, head of the HFSC’s Digital Assets, Financial Technology and Artificial Intelligence Subcommittee, wrote in a joint opinion piece last week that Congress has overlooked the sector for too long.

“There is little doubt that these innovations will make financial products more affordable and accessible,” they wrote. “From stablecoins to tokenization of assets, to decentralized finance applications, these advancements have the potential to lower costs and expand opportunities for both investors and consumers.”

Also last week, U.S. crypto exchange Coinbase called on Congress to create regulations for the digital asset industry, saying “the absence of clear legislation in the United States stifles … potential, leaves consumers exposed and drives innovation overseas.”

Among the legislative priorities outlined by the company is a law that distinguishes between securities, commodities and other types of tokens.

Coinbase is also calling for a law that would give the Commodity Futures Trading Commission the power to govern the crypto spot market, “ensuring transparency and protecting consumers from fraud and manipulation.”