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With the funding, Bitwise is looking to expand its offerings to more banks and asset management firms.
Bitwise, one of the world’s largest cryptocurrency index funds has completed a new Series B funding round, netting a total of $70 million from both old and new investors. According to a report by The Block, the Bitwise funding round was co-led by cryptocurrency investment firm Electric Capital and Elad Gil with the company’s valuation now placed around half a billion dollars.
Other institutional investors that participated in the funding round include Daniel Loeb’s Third Point, Robert Leshner, founder of Compound, Henry Kravis, Stanley Druckenmiller, and Bridgewater’s Chief Executive Officer David McCormick. Bitwise, now 4 years since it was floated notably turned profitable this year after floating about $1.2 billion Assets Under Management (AUM) in the first quarter.
According to the reports, the company’s CEO Hunter Horsley submitted that the decision to raise funds was not because the firm needs it, but rather, to get bigger names on Wall Street onboard its mission to connect with more investors in the market they all know so well.
“These are the best in class firms, organizations, cultures, brands in each of their areas,” he said speaking to the legion of new investors. “They understand the ins and outs of Wall Street and the different platforms and can help us navigate the asset management landscape they know so well.”
With the funding, Bitwise is looking to expand its offerings to more banks and asset management firms. The company is also on track to double its sales agents by the end of the year, a move that can boost its expansionary drives.
Bitwise to Change the Game with Backed by the Latest Funding Round
The most popular engagements in the digital currency ecosystem revolve around buying, selling moved by worrying asset speculations in the short term. Following its latest funding round, the Bitwise boss re-emphasized the long-term focus of the firm, as it strives to grant its clients access to new crypto index funds and products.
“Much of the crypto industry is trading and traders, people looking at the price everyday and thinking about what the latest news or tweet means for price over the next seven days,” Horsley said. “We serve the long-term investor thinking if this has a role to play in the next 5-10 years of how they approach their portfolio and building a thesis.”
Its desires to serve institutional investors and more conservative and long-term oriented clients made it one of the early pioneers of a Bitcoin ETF product. While the company has not reapplied since it withdrew the application back in January 2020, Horsley said the firm will apply again when the time is right.
“The SEC is very thoughtful on the space, is considering the right dimensions in terms of evaluating perspective and we’re trying to be helpful collaborator to them,” Horsley said. “We’re spending time there, we’re optimistic one will be possible and we’ll file when we think the time is right.”