Nikolas Sargeant
TL;DR
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Bitwise Asset Management reduced its global workforce by 14% to approximately 155 employees.
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CEO Hunter Horsley said the restructuring positions the company for continued growth.
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The Bitwise 10 Crypto Index Fund’s net assets declined 31% during the first seven months of 2026.
Bitwise Asset Management has cut 14% of its workforce as the cryptocurrency industry continues to navigate weak market conditions.
CEO Hunter Horsley confirmed that the company reduced its global team to approximately 155 employees last week. Based on those figures, the restructuring affected roughly 25 positions.
Despite the layoffs, Horsley said Bitwise remains positioned to benefit from the crypto sector’s long-term expansion.
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,” Horsley said in an emailed statement to The Block.
Crypto Downturn Weighs on Bitwise Assets
The staff reduction follows an extended downturn across the cryptocurrency market, which has pressured asset prices, investment activity and revenue at companies operating in the sector.
Bitwise’s flagship Bitwise 10 Crypto Index Fund (BITW) illustrates the extent of the decline. According to the fund’s fact sheet, its net assets fell 31% during the first seven months of 2026.
BITW provides exposure to a selection of major cryptocurrencies, meaning its asset base is closely tied to changes in crypto prices and investor demand. Declining asset values can reduce the management fees earned by asset managers, potentially forcing companies to reconsider expenses and staffing levels.
Bitwise Continues Expansion Through Acquisitions
Although Bitwise has reduced its headcount, the company continues to pursue growth through strategic acquisitions.
In February, Bitwise completed its acquisition of Chorus One, an institutional staking provider supporting more than 30 proof-of-stake networks.
The deal expanded Bitwise’s staking capabilities and allowed the company to offer a broader range of services to institutional clients. It also reflected the asset manager’s efforts to diversify beyond traditional crypto funds and exchange-traded products.
Bitwise’s decision to continue investing in selected growth areas while reducing its overall workforce suggests that the company is prioritizing business lines it considers most valuable over the long term.
Bitwise is the latest major cryptocurrency company to reduce its workforce in 2026. Other firms have cut jobs as they respond to falling prices, slower activity and the adoption of artificial intelligence tools designed to improve operational efficiency.
In July, Polygon Labs announced its second round of layoffs of the year while completing its acquisition of Coinme and repositioning its business around crypto payments.
Crypto custodian BitGo reduced its workforce by 15% in June, citing changes across the digital-asset ecosystem.
Coinbase also cut 14% of its employees in May as the publicly listed exchange navigated the market downturn and shifted toward AI-native 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.
Bitwise CIO Sees Signs of a Market Bottom
Despite the difficult operating environment, Bitwise Chief Investment Officer Matt Hougan remains optimistic about the crypto market’s near-term prospects.
In an interview with Bloomberg on Tuesday, Hougan argued that Bitcoin’s resilience in the face of negative developments suggests the bear market may have reached its bottom.
Recent headwinds include the delay of the Clarity Act and Strategy’s Bitcoin sales. Bitcoin’s ability to absorb those developments without experiencing a more severe decline could indicate that 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. Wider adoption by financial advisers and their clients could introduce substantial new capital to digital assets without attracting the same immediate attention as retail-led speculation.
For now, Bitwise’s layoffs reflect the tension between challenging short-term market conditions and confidence in crypto’s longer-term institutional growth.
