Bitwise Lays Off 14% of Its Workforce — Here's What the Crypto Slump Means for ETF Issuers
4h ago · 1 source
Bitwise, one of the leading crypto asset management firms and ETF issuers, has cut approximately 14% of its staff amid a prolonged downturn in the crypto market. The layoffs signal that the bear market pressures are now reaching even the institutional players that were expected to benefit from the wave of crypto ETF approvals.
WHY IT MATTERS
Think of a crypto ETF issuer like a company that runs a toll booth on a highway. When lots of cars (investor money) are flowing through, they collect plenty of tolls (fees). But when traffic slows down — as it does during a crypto bear market — there's less money coming in. Bitwise makes money by managing crypto investment funds, and when crypto prices drop, the total value of those funds shrinks, meaning Bitwise earns less in fees. Laying off staff is their way of cutting costs to survive the slowdown. For everyday crypto enthusiasts, this is a sign that the current downturn is serious enough to affect even the big institutional players, not just individual investors.
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