Bitwise cuts 14% of its workforce as the crypto slump reaches ETF issuers

The asset manager confirmed that headcount fell to about 155 from roughly 180 while its bitcoin ETF holds less than 3% of U.S. spot-fund assets.

By The Third AnglePublished August 12, 2026 at 14:18 UTC3 min read

The New York Stock Exchange building on Wall Street. — The New York Stock Exchange, used as an illustration for the U.S. exchange-traded-fund market. Photo: Mike Peel / Wikimedia Commons · Public domain

Bitwise's spot bitcoin ETF holds about $2.3 billion, less than 3% of the U.S. category, according to SoSoValue data cited in current reporting. BlackRock's IBIT and Fidelity's FBTC hold much larger asset bases, leaving smaller issuers with less fee revenue to absorb a downturn.

ETF access has not insulated the issuer business

Bitcoin was trading near $64,000 when the cut was reported, roughly half its October 2025 record. Bitwise is not alone in reducing staff: Coinbase cut 14% in May and FalconX cut about 10% in early August.

The layoffs do not mean Bitwise is closing its funds or abandoning crypto. They show that product availability and business resilience are different questions. In a fee business tied to assets and trading activity, a smaller market share and lower asset prices can reach operating costs even while the funds remain open.

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