Bitwise reduces staff amid market downturn: what is happening in the industry
Asset management firm Bitwise Asset Management has announced a 14% reduction in its workforce. The company's head, Hunter Horsley, confirmed that after the optimization, about 155 specialists remain on the team. This decision is a direct consequence of the prolonged bearish trend that continues to pressure the crypto market.
Flagship fund under pressure
A key indicator of the problems is the dynamics of net assets in Bitwise's main product, the Bitwise 10 Crypto Index (BITW). Since the start of 2026, the figure has dropped by 31%, reflecting not only the volatility of digital assets but also a general decline in institutional investor interest in indices amid uncertainty.
Notably, the cuts have not halted the company's expansion. In February, Bitwise completed the acquisition of staking infrastructure provider Chorus One. According to Horsley, the workforce restructuring is a deliberate step to strengthen positions in the long term, especially in the context of the gradual integration of cryptocurrencies into the global financial system.
Wave of layoffs in the sector
Bitwise is not the only company forced to tighten its belt. Earlier, Polygon Labs, BitGo, and the exchange Coinbase announced layoffs. The overall picture is clear: the industry is experiencing a phase of stagnation, and companies are simultaneously revising their operating models, betting on automation and the adoption of AI solutions.
Nevertheless, Bitwise's chief investment officer, Matt Hougan, remains optimistic. He claims that bitcoin is showing resilience to negative macroeconomic signals, and the market has likely already reached a local bottom. Hougan predicts that capital management platforms will become the key driver of recovery, attracting new participants.
For context: in June, Robinhood also laid off 10% of its staff, with CEO Vlad Tenev explaining this as a need to simplify the management structure. The trend is obvious — companies are adapting to a new reality where survival depends on flexibility and efficiency.
My take: The layoffs at Bitwise are a symptom of a deeper correction, but not panic. The purchase of Chorus One shows that the firm is thinking long-term, not just about current losses. If Hougan's forecast about the market bottom is correct, then the current measures could prove to be timely preparation for the next bull cycle. However, investors should remain cautious: restoring confidence in indices will take longer than it seems.