Bitwise cuts 14% of staff as CIO says bitcoin bottoming

Bitwise Asset Management reduced its workforce by 14%, lowering headcount to about 155 from 180. Company executives described the cuts as cost discipline after an extended period of weak digital-asset prices that pressured revenue across the industry.

Bitwise reported client assets rose to more than $15 billion from about $11 billion in April. The firm raised $70 million in early 2025 to expand staff and introduce new products, but hiring plans were scaled back as market conditions deteriorated in 2026.

During the staffing reduction, Bitwise continued to expand its product lineup. It launched a spot XRP ETF on the New York Stock Exchange and filed regulatory paperwork for 11 single-token ETFs tied to tokens including Hyperliquid, Sui, Near and Aave.

Other digital-asset firms also reported workforce reductions this year. Public trackers show more than 7,254 disclosed job cuts at roughly 47 crypto companies; firms that announced cuts include Coinbase, Gemini, Crypto.com and Kraken.

Several events have affected trading volumes and revenue. Bitcoin’s price has been choppy in recent months. A firmware flaw in a 2021 Coldcard software update triggered four waves of drains beginning July 30 that removed about $116 million from thousands of addresses. The CLARITY Act stalled in the Senate ahead of the August recess, reducing a potential near-term legislative catalyst.

Matt Hougan, Bitwise’s chief investment officer, told reporters he believes bitcoin is ‘in the process of bottoming right now.’ He pointed to collapsing leverage in derivatives markets, funding rates that have turned decisively negative, and a record stablecoin supply of about $322 billion earlier this year. He also noted that more normalized flows into exchange-traded funds suggest institutional selling pressure is easing.

The Senate is expected to revisit the CLARITY Act in September. Bitwise reduced staff while continuing product filings and other operations.