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Bitwise Lands $1.8B in Bear Market
24 Aug
Summary
- Bitwise attracted over $1.8 billion in new money during the first half of 2026.
- Three of Bitwise's four product lines that attracted over $100 million each pay investors income.
- The Bitwise 10 Crypto Index ETF, which offers no yield, saw its assets shrink by 34%.
In the first half of 2026, Bitwise Asset Management experienced substantial growth, accumulating over $1.8 billion in new investor capital. This occurred even as cryptocurrency prices generally declined throughout the period. Analyst Tom Lee recognized this achievement as outstanding, noting the significant inflows amidst challenging market conditions.
The substantial capital infusion was not solely driven by potential price increases. Three of Bitwise's four franchises, each attracting more than $100 million, specifically offer investors an income-generating component. These include ETFs and ETPs, private strategies, staking services, and vault products. For instance, Bitwise's vault product, launched in January with Morpho, targets an annual yield of approximately 6% on stablecoins, while its Crypto Carry Fund held $259 million by late May with a 4% yield.
In contrast, the Bitwise 10 Crypto Index ETF (BITW), which focuses on a basket of large tokens without providing yield, saw a considerable decline. Its net assets fell by 34% from $1.03 billion to $678 million between December 31, 2025, and March 31, 2026. This reduction was due to both a 24% decrease in share price and investor redemptions. Despite a recent fee reduction and a 94.8% gain in 2024, this specific product experienced significant outflows, reflecting a broader investor preference for yield-bearing crypto assets.
