Bitwise cuts 14% of staff; BITW assets drop 31% in 2026

Bitwise Asset Management has cut 14% of its workforce, reducing its global team to about 155 employees. The cuts come during a prolonged crypto market downturn.

CEO Hunter Horsley confirmed the layoffs in an emailed statement. He said the reduction was completed last week and leaves the company positioned to continue expanding its business.

The 14% cut means Bitwise entered August with a smaller workforce while it continued building its investment and staking businesses.

The Bitwise 10 Crypto Index Fund, or BITW, recorded a 31% drop in net assets during the first seven months of 2026, according to data cited by The Block.

Bitwise has continued launching products despite the weaker market. In May, its Hyperliquid exchange-traded fund recorded about $19 million in inflows during a single trading day. Horsley said the fund generated roughly $22 million in trading volume that day, meaning most of the activity came from purchases. The Bitwise Hyperliquid ETF launched on the New York Stock Exchange on May 15 with a 0.34% sponsor fee, which was waived for the first month on the first $500 million in assets.

Demand has also emerged for some of the company's other altcoin products. In June, Horsley said Bitwise's XRP exchange-traded products in the US and Europe had collected more than $200 million in inflows since the beginning of 2026.

Alongside its fund business, Bitwise has used acquisitions to add services for institutional crypto investors. In February, the asset manager completed its acquisition of Chorus One, an institutional staking provider. The transaction expanded Bitwise's staking operations.

The workforce reduction follows a period in which Bitwise has been adding businesses and launching vehicles while managing the effects of lower crypto prices.

Bitwise is not alone. Several other crypto businesses have reduced headcount in 2026. BitGo cut nearly 15% of its workforce in June. CEO Mike Belshe described the reduction as a one-time action. Coinbase announced plans to cut about 14% of its workforce in May. CEO Brian Armstrong linked the decision to both the market cycle and the company's increased use of artificial intelligence. Kraken also cut around 150 positions in May. Dune Analytics reduced its workforce by 25% in the same month. Polygon Labs followed with another round of layoffs in July.

Bitwise Chief Investment Officer Matt Hougan told Bloomberg on Tuesday that Bitcoin's reaction to recent negative developments could mean the bear market has already reached its bottom. Hougan pointed to Bitcoin's ability to hold up despite delays involving the CLARITY Act and Bitcoin sales by Strategy. Hougan also told Bloomberg that large wealth management platforms could become the "quiet catalyst" for the next crypto bull market.