In a strategic move that could reshape the crypto investment landscape, Bitwise Asset Management has acquired Chorus One, a leading staking services provider. The acquisition, which brings over $2.2 billion in staked assets and 50 new employees to Bitwise Onchain Solutions, positions Bitwise to expand its portfolio of crypto staking products and diversify its range of exchange-traded funds (ETFs).
Expanding Staking Capabilities
Chorus One, founded in 2018, has been a cornerstone in the crypto staking infrastructure, serving a diverse clientele including finance firms, family offices, high-net-worth individuals, custodians, funds, exchanges, and decentralized protocols. The company’s expertise spans more than 30 proof-of-stake (PoS) chains, including Solana, Avalanche, and Tezos. With this acquisition, Bitwise now gains access to a robust network that could significantly enhance its staking services.
Enhancing Bitwise’s ETF Portfolio
The acquisition is particularly timely as the Securities and Exchange Commission (SEC) has shown increasing support for a broader range of crypto investment products. Staking, which allows crypto holders to earn rewards by locking their tokens on a blockchain, is a compelling opportunity for Bitwise’s thousands of clients holding spot crypto assets. The rewards, typically between 2% and 10% annually, provide investors with additional yield on top of potential token appreciation.
Bitwise CEO Hunter Horsley emphasized the strategic importance of the acquisition, stating, “Staking remains one of the most compelling growth opportunities for our clients. By integrating Chorus One’s capabilities, we can offer a more comprehensive and robust suite of staking products.”
Leadership and Integration
The Chorus One team, including CEO Brian Crain, will join Bitwise Onchain Solutions. Crain will take on an advisory role, bringing his extensive experience in the staking ecosystem to the table. This integration is expected to streamline operations and enhance the overall efficiency of Bitwise’s staking services.
As of February, Bitwise manages over $15 billion in assets across more than 40 investment products, including the Bitwise Bitcoin ETF (BITB) and the Bitwise Ethereum ETF (ETHW), which have attracted over $2 billion and $387 million in flows since their launches in January and July 2024, respectively. Other notable products in Bitwise’s portfolio include the Bitwise Solana Staking ETF (BSOL), Bitwise XRP ETF (XRP), Bitwise Chainlink ETF (CLNK), and Bitwise Dogecoin ETF (BWOW).
Looking Forward
The acquisition of Chorus One is a significant step in Bitwise’s strategy to remain at the forefront of the crypto investment industry. As the SEC continues to signal openness to more crypto ETFs, Bitwise’s expanded staking capabilities position the firm to capitalize on the growing demand for yield-generating crypto products. With a strong team and a robust portfolio, Bitwise is well-equipped to navigate the evolving regulatory landscape and meet the needs of its diverse client base.
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