Crypto asset manager Bitwise has acquired London-based ETC Group, significantly expanding its footprint in Europe.

This acquisition adds over $1 billion in assets under management (AUM) to Bitwise, bringing its total AUM to over $4.5 billion.

Included in the acquisition are nine European-listed crypto exchange-traded products (ETPs), enhancing Bitwise's product offerings.

Bitwise CEO Hunter Horsley expressed that this strategic move enables the firm to better serve European investors with institutional-grade solutions.

The acquisition allows Bitwise to leverage ETC Group's expertise and insights into the European market, particularly with products domiciled in Germany.

ETC Group, founded in 2019, is a significant issuer of crypto ETPs in Europe, having launched its first products in 2020 after gaining regulatory approval from Germany's BaFin.

ETC Group is known for offering Europe's largest physical Bitcoin ETP, BTCE, along with a staked ether ETP (ET32).

This acquisition reflects a broader trend of consolidation within the crypto investment landscape, similar to CoinShares' recent acquisition of Valkyrie's fund business.

Bitwise anticipates increased institutional investment in crypto ETFs as major financial institutions begin offering these products to clients.

This expansion follows Bitwise's successful product launches in the U.S., including the Bitwise Bitcoin ETF and Bitwise Ethereum ETF, which have attracted over $2 billion since their launch earlier this year.

Bitwise was also involved in launching the first U.S. spot Bitcoin ETFs and introduced a spot ether product last month, further solidifying its position in the market.

Currently, there is significant adoption of Bitcoin ETFs by registered investment advisers in the U.S., with over $51 billion in assets under management across 11 Bitcoin ETFs.