Bitwise cuts staff by 14%: market downturn and survival strategy
Bitwise Asset Management has decided to cut 14% of its staff. Company CEO Hunter Horsley confirmed that after the optimization, about 155 specialists will remain on the payroll. This is a step that reflects the harsh reality of the current market cycle, where even leading asset managers are forced to adapt to a prolonged bearish trend.
The key trigger was a significant decline in the net assets of the flagship product—the Bitwise 10 Crypto Index fund (BITW). Since the beginning of 2026, this figure has dropped by 31%, which is a direct consequence of volatility and reduced interest from institutional investors in cryptocurrency instruments. These are not just numbers—they are a signal that the market is undergoing a phase of deep correction, and the company has to reassess its operating expenses.
Expansion despite the crisis
It is telling that the layoffs do not mean stagnation. In February, Bitwise completed the acquisition of the staking infrastructure provider Chorus One. Horsley emphasizes that the staff optimization is not panic, but a deliberate strategy to strengthen positions in the long term, especially against the backdrop of the gradual integration of cryptocurrencies into the global financial system. This approach allows resources to be reallocated to more promising areas.
Bitwise is not the only company facing the need for layoffs. Earlier, Polygon Labs, BitGo, and the exchange Coinbase announced similar measures. The overall trend is explained not only by market stagnation, but also by the active adoption of artificial intelligence, which automates many processes, reducing the need for manual labor.
A look to the future
Despite the bleak figures, Bitwise Chief Investment Officer Matt Hougan remains optimistic. He notes that bitcoin has demonstrated resilience to negative macroeconomic news, and the market has likely already bottomed out. According to his forecast, the key growth driver will be wealth management platforms, which will facilitate the inflow of new funds into the industry.
In the context of these events, it is worth recalling that in June, Robinhood also laid off 10% of its employees, citing the simplification of its management structure. This confirms that the industry is going through a consolidation cycle, and only those who can effectively balance cost cuts with investments in the future will survive.
My analysis: The layoffs at Bitwise are an alarming but expected signal. The 31% drop in BITW reflects not only market conditions, but also a loss of confidence in indices amid alternative ETFs. However, the purchase of Chorus One is a smart move: staking is becoming a key source of yield in a low-volatility environment. I believe the market is indeed close to a turning point, but the recovery will be slow and selective, with a focus on infrastructure projects.