Bitwise cuts 14% of staff even as CIO calls a Bitcoin market bottom

Bitwise Asset Management has cut 14% of its global workforce, trimming headcount from about 180 to roughly 155, as the crypto asset manager weighs a prolonged market downturn against continued expansion into staking, tokenized funds and new ETFs.

Chief Executive Officer Hunter Horsley confirmed the reduction in an emailed statement to The Block, saying the staff changes were completed last week. Despite the cuts, Horsley argued that the company remains positioned to capture growth as cryptocurrency becomes more integrated with the broader financial system.

The restructuring comes as the firm’s Bitwise 10 Crypto Index Fund, or BITW, has faced a significant decline in net assets. Data cited by The Block shows that the fund’s net assets dropped 31% during the first seven months of 2026, highlighting the pressure that weaker crypto markets can place on asset managers whose products are tied to digital-asset valuations.

Bitwise layoffs shrink team as crypto markets remain under pressure

The latest Bitwise layoffs represent a notable adjustment for a company that has simultaneously been expanding its product lineup and institutional infrastructure.

Horsley said the workforce reduction “equips us well” for the growth Bitwise has experienced and expects to continue as crypto adoption broadens. The message reflects a strategy increasingly visible across the digital-asset sector: companies are trimming costs and reorganizing operations while preserving resources for businesses they believe will benefit from the next market expansion.

BITW’s 31% decline in net assets is particularly significant because the product provides investors with diversified exposure to a basket of major cryptocurrencies. The fund began trading on NYSE Arca in December 2025 after previously operating as a closed-end trust in the over-the-counter market. At launch, Bitwise described it as the world’s largest crypto index fund.

Yet weaker assets have not stopped Bitwise from launching products. In May, the firm launched its spot Hyperliquid ETF, giving investors regulated exposure to the token through a traditional exchange-traded structure. Bitwise’s newsroom also shows a steady stream of product launches and strategic initiatives throughout 2026, including model portfolios, an Avalanche staking product and tokenized-fund expansion.

That combination — cutting costs while continuing to build — is central to understanding the latest Bitwise layoffs.

Expansion continues despite the workforce reduction

Bitwise’s strategy has not been limited to launching investment products. The company has also been building infrastructure designed to serve institutional investors.

In February, Bitwise completed its acquisition of Chorus One, an institutional staking provider. Bitwise said the deal added more than 50 technology professionals and expanded its staking capabilities across more than 30 proof-of-stake networks. Chorus One joined Bitwise Onchain Solutions, the company’s staking division.

The acquisition illustrates the tension surrounding the Bitwise layoffs. The firm is reducing its overall workforce while selectively adding capabilities in areas it considers strategically important.

That approach is also visible in Bitwise’s broader product expansion. In February, the company launched model portfolio solutions designed to give financial advisers structured ways to incorporate digital assets through ETFs. In May, it moved further into tokenized funds by taking over management of Superstate’s Crypto Carry Fund, a $267 million tokenized investment product at the time of the announcement.

Rather than signaling a retreat from crypto, the restructuring therefore appears to be a reallocation of resources toward businesses Bitwise sees as having longer-term potential.

Bitwise layoffs mirror a wider crypto industry reset

The Bitwise layoffs also arrive during a broader wave of workforce reductions across crypto.

BitGo announced in June that it was cutting 15% of its staff as it refocused on security, trading, stablecoins, settlement and AI-powered infrastructure. CEO Mike Belshe said the ecosystem had changed dramatically and that the company needed to become more focused.

Coinbase announced a roughly 14% workforce reduction in May. CEO Brian Armstrong cited market volatility and the growing impact of artificial intelligence, saying the company wanted to become “lean, fast, and AI-native.”

Kraken also eliminated about 150 positions in May after expanding its use of AI, according to Bloomberg reporting. The reductions came as the exchange faced weaker digital-asset prices and questions over the timing of a potential U.S. public listing.

Polygon Labs announced another round of layoffs in July as it worked toward completing its Coinme acquisition and reshaping itself around blockchain-based payments.

The pattern suggests that crypto companies are not simply responding to falling token prices. Many are simultaneously attempting to automate operations, simplify organizational structures and redirect investment toward areas such as stablecoins, payments, staking and artificial intelligence.

For Bitwise, the latest Bitwise layoffs therefore appear to be part of a broader industry recalibration rather than a complete reversal of its expansion strategy.

Bitwise CIO sees possible Bitcoin market bottom

Despite the staff reduction, Bitwise’s investment leadership remains relatively constructive on the crypto market.

Chief Investment Officer Matt Hougan told Bloomberg that Bitcoin’s resilience in the face of negative developments could indicate that the current crypto bear market has already reached its bottom. His comments came as investors assessed developments including delays surrounding the CLARITY Act and Bitcoin sales by Strategy. The Block also reported his view that major wealth-management platforms could become a “quiet catalyst” for the next crypto bull market.

That outlook provides important context for the Bitwise layoffs. A smaller workforce does not necessarily mean the company expects crypto demand to disappear. Instead, Bitwise appears to be positioning itself to operate more efficiently while preserving investment in areas it believes can benefit when institutional adoption accelerates.

The immediate challenge is balancing that long-term optimism against the reality of weaker fund assets and a market that has yet to produce the sustained momentum investors have been waiting for.

For now, Bitwise is betting that a leaner organization, a broader product portfolio and deeper institutional infrastructure can put it in a stronger position when the next phase of crypto growth arrives.