Bitwise Asset Management has reduced its staff by approximately 14 percent, bringing its global headcount to roughly 155 from around 180. The move, confirmed by the firm in an emailed statement, comes as the company manages a decline in client assets and weaker performance across certain investment products during a prolonged market downturn.

Chief Executive Officer Hunter Horsley said the reduction was completed last week and leaves the firm positioned for continued expansion. The adjustment equips the company well for the ongoing growth seen this year and expected to continue as crypto further integrates into the global economy, according to Horsley.

Client Assets and Product Performance

Bitwise now reports $9 billion in client assets across more than 70 products. That figure is down from more than $15 billion the firm announced nearly a year earlier. In August 2025, Bitwise stated it employed 108 people and offered more than 40 investment products. Headcount later rose to about 180 before the latest cuts, which reverse part of that rapid expansion.

The Bitwise 10 Crypto Index Fund, known as BITW, provides one clear illustration of the pressure on assets. The fund ended June with $532.8 million in net assets, down from $1.03 billion at the end of 2025. Shares outstanding declined to 14.14 million from 17.45 million over the same period, while net asset value per share fell to $37.67 from $59.01. Bitcoin accounted for 77.8 percent of the fund’s holdings at quarter-end.

By August 10, BITW had recovered modestly to $576.5 million in net assets, with Bitcoin still comprising about 77.5 percent of the portfolio. Separate data indicated a 31 percent drop in the fund’s net assets during the first seven months of 2026.

Expansion Amid Market Pressure

Despite the weaker conditions and staff reduction, Bitwise has continued to broaden its offerings. In February the firm completed its acquisition of Chorus One, an institutional staking provider, expanding its services beyond core investment products. The company has also launched additional vehicles, including a Hyperliquid exchange-traded fund that recorded roughly $19 million in inflows on a single trading day in May, its largest daily inflow at the time.

Demand has appeared for other altcoin products as well. In June, Horsley noted that Bitwise’s XRP exchange-traded products in the United States and Europe had gathered more than $200 million in inflows since the start of 2026.

Market Outlook from Investment Leadership

Bitwise Chief Investment Officer Matt Hougan has argued that the market may be stabilizing. In an interview on August 11, Hougan said crypto may be at the bottom of its current winter. He pointed to Bitcoin’s resilience in the face of delays related to the CLARITY Act and sales of Bitcoin by Strategy as potential signs that the bear market has already reached its low point.

Hougan also indicated that large wealth management platforms could serve as a quiet catalyst for the next period of stronger performance, citing institutional distribution as a factor likely to influence the market after the current downturn.

The staff cuts place Bitwise among several crypto firms that have reduced headcount in 2026 while continuing to develop products and pursue growth opportunities in a challenging environment.