Bitwise Cuts 14% of Staff as Its Own CIO Calls a Bitcoin Bottom

A Rough Stretch for Crypto’s Asset Managers

Bitwise Asset Management, 1 of the largest crypto-focused plus managers successful the United States, has laid disconnected astir 14% of its staff, according to Bloomberg.

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The simplification comes arsenic a prolonged slump successful digital-asset prices has forced firms crossed the manufacture to chopped costs, adjacent though Bitwise itself precocious surpassed $15 cardinal successful lawsuit assets, up from astir $11 cardinal successful April (suggesting the cuts are astir outgo subject alternatively than shrinking business).

The determination besides stands successful opposition to Bitwise’s trajectory conscionable 18 months ago. In February 2025, the steadfast raised $70 million from investors to grow its squad and rotation retired caller crypto products. That enlargement thrust has present reversed arsenic marketplace conditions soured done 2026, adjacent arsenic the steadfast keeps expanding its merchandise lineup elsewhere, including a spot XRP ETF launched connected the NYSE and filings for 11 further single-token ETFs tied to tokens specified arsenic Hyperliquid, Sui, Near and Aave.

Bitwise Isn’t Alone successful the Cutbacks

The layoffs spot Bitwise alongside a increasing database of digital-asset firms trimming unit this twelvemonth arsenic Coinbase besides chopped 14% of its workforce earlier successful 2026, and exchanges Gemini, Crypto.com and Kraken person each announced reductions arsenic the industry’s occupation marketplace struggles to recover.

Trackers person counted much than 7,254 disclosed occupation cuts crossed 47 companies truthful acold this year, a fig the site’s researchers accidental apt understates the existent full since galore institution disclosures omit factual headcount stats.

A ample chunk of the unit traces backmost to bitcoin’s choppy terms enactment successful caller months, overmuch of which was compounded (not successful terms enactment alone) precocious erstwhile a firmware flaw rooted successful a 2021 Coldcard bundle update drained astir $116 million from thousands of addresses crossed 4 abstracted waves starting July 30.

Expected to get the aforesaid week, the CLARITY Act besides stalled successful the Senate up of its August recess. And portion bitcoin absorbed some events without a crisp directional move, the extended uncertainty has weighed connected trading volumes and, by extension, plus manager revenue.

The CIO Sees It Differently: ‘We’re Bottoming’

While Bitwise reduced its worker count, the firm’s main concern serviceman (CIO), Matt Hougan, told reporters a antithetic story astir wherever bitcoin’s terms is headed, stating that helium believes the marketplace is “in the process of bottoming close now,” pointing to a illness successful excess leverage crossed crypto derivatives markets, backing rates turning decisively negative, amongst different factors.

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Hougan has made versions of this bottommost telephone before. Back successful July, helium argued the bottom was person than ever, pointing to volatility successful Strategy’s preferred stock, bitcoin trading beneath cardinal method levels, and utmost readings connected the Fear and Greed Index arsenic signs of a leverage flush alternatively than a illness successful demand.

His latest comments adhd a caller information constituent arsenic stablecoin proviso (often work arsenic adust pulverization waiting to participate crypto markets) deed a grounds $322 cardinal earlier this year, larger than the overseas currency reserves of 95 countries.

Hougan besides pointed to normalizing exchange-traded money (ETF) flows arsenic a motion that organization selling unit is easing, arguing the marketplace is pricing bear-market conditions onto an manufacture astir doubly the size it was astatine the past cycle’s bottom.

The adjacent existent trial for Hougan’s assertions arrives successful September, erstwhile the Senate is expected to revisit the CLARITY Act, giving traders different catalyst to measurement against his bottoming thesis.