Bitwise to Acquire Chorus One, Laying Groundwork to Expand Staking ETFs

Source

YM Lee

Summary

Bitwise said that through its acquisition of Chorus One, it has secured more than $2.2 billion in staking assets and staking capabilities across more than 30 proof-of-stake (PoS) blockchains.
Bitwise said staking is one of the most attractive growth opportunities for clients holding spot digital assets, citing the potential for rising demand from institutional investors.
Bitwise said it manages more than 40 investment products, including the Bitcoin ETF (BITB) and Ethereum ETF (ETHW), with more than $15 billion in assets under management and multi-billion-dollar inflows.

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Digital-asset manager Bitwise has acquired staking services firm Chorus One.

According to Cointelegraph on the 24th (local time), Bitwise said it has acquired Chorus One, which manages more than $2.2 billion in staking assets. Some 50 Chorus One employees are expected to join Bitwise’s on-chain solutions unit. The purchase price was not disclosed.

With the deal, Bitwise will secure staking capabilities across more than 30 proof-of-stake (PoS) blockchains. The covered networks include Solana, Hyperliquid, Monad, Avalanche, Sui, Aptos and Tezos.

Staking is a mechanism in which digital-asset (cryptocurrency) holders lock tokens on a blockchain to help operate the network and receive annual rewards of about 2% to 10%. With the ability to generate additional yield separate from potential token price gains, demand from institutional investors has been rising.

Hunter Horsley, Bitwise’s chief executive officer (CEO), said, “Staking is one of the most compelling growth opportunities for clients who hold spot digital assets.”

Since its founding in 2018, Chorus One has provided staking infrastructure to financial institutions, family offices, high-net-worth individuals, custodians, funds, exchanges and decentralized protocols. Brian Crain, Chorus One’s chief executive officer (CEO), will join Bitwise in an advisory role.

Bitwise currently employs about 200 people worldwide and manages more than 40 investment products. Assets under management topped $15 billion as of February.

Flagship offerings include the Bitwise Bitcoin ETF (BITB) and the Bitwise Ethereum ETF (ETHW). Since their launches in January and July 2024, the two products have posted inflows of $2 billion and $387 million, respectively. Bitwise also manages the Bitwise Solana Staking ETF (BSOL), Bitwise XRP ETF (XRP), Bitwise Chainlink ETF (CLNK) and Bitwise Dogecoin ETF (BWOW), among others.