Bitwise Cuts 14% of Staff as Crypto Slump Hits ETFs
The layoffs match Coinbase's May cuts and follow shutdowns at BitMEX and BitMart.
Bitwise Asset Management cut 14% of its workforce as of August 2026, making it the latest crypto firm to shed staff amid a prolonged market downturn that has now reached ETF issuers.
Why It Matters
Bitwise is not a marginal player — it manages several spot Bitcoin and Ethereum ETFs that attracted significant retail and institutional inflows during the 2024–2025 approval wave. A 14% headcount reduction signals that even firms which built credibility around regulated, mainstream crypto products are not insulated from bear-market pressure. According to Decrypt, the cut mirrors the exact percentage Coinbase shed in May 2026, suggesting industry-wide cost discipline rather than a company-specific problem. For iGaming operators and affiliates whose payment rails or treasury strategies touch crypto, this consolidation wave increases counterparty risk and narrows the field of reliable infrastructure providers.
Context
The Bitwise cuts follow exchange shutdowns at BitMEX and BitMart, per Decrypt, painting a picture of a sector contracting across custody, trading, and asset management simultaneously. Spot crypto ETF approval was widely expected to stabilise the industry by connecting traditional capital to digital assets, but fee compression and falling AUM appear to have offset those gains. The current slump has erased hiring made during the 2023–2024 bull cycle.
What's Next
Watch whether other mid-tier ETF issuers — including those competing directly with Bitwise on Bitcoin and Ethereum products — announce similar restructurings in the weeks ahead. Any acceleration in layoffs could pressure ETF spreads and liquidity, which matters directly to institutional bettors and operators using crypto settlement.
Gambling involves risk. Crypto assets are volatile and unregulated in many jurisdictions.
Source: Decrypt
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