USDBitwise Cuts 14% of Workforce as Crypto Market Weakness Pressures Business
Asset manager trims staff months after expanding staking operations through Chorus One
TL;DR
- Bitwise Asset Management reduced its global workforce as crypto market conditions weakened.
- The cuts came months after Bitwise expanded its staking business through the Chorus One acquisition.
- Bitwise executives remained constructive on longer-term crypto growth despite the restructuring.
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Bitwise Asset Management cut about 14% of its workforce in August, reducing headcount to around 155 from nearly 180 as the crypto asset manager adjusted staffing during weaker market conditions. Chief Executive Hunter Horsley said the company remained positioned for continued expansion even after the reduction, while the firm's Bitwise 10 Crypto Index Fund experienced a sharp decline in net assets during the first half of 2026.
The latest round amounted to roughly 25 positions. Bitwise's workforce had stood at about 200 employees when the company completed its acquisition of staking infrastructure provider Chorus One on February 24, leaving total headcount down by roughly 45 employees, or about one-quarter, from that level.
Horsley framed the staffing adjustment as preparation for further expansion rather than a retreat from the business. He said the move “equips us well for the ongoing growth we’ve seen this year and expect to continue as crypto further integrates into the global economy.” Horsley also said Bitwise's workforce remained at a historically high level relative to the company's eight years in business.
Chorus One deal expanded Bitwise's staking operations
Bitwise's workforce reduction followed a major expansion of its staking business. The Chorus One transaction added more than $2.2 billion in staked assets and 50 technology professionals while extending Bitwise's reach across more than 30 proof-of-stake networks, including Solana, Avalanche, Sui and Aptos. Chorus One was consolidated into Bitwise Onchain Solutions, the company's staking arm.
Horsley had called staking “one of the most compelling growth opportunities” for clients holding crypto assets when the acquisition was completed. He also praised Chorus One's “eight-year track record of doing things the right way.” The acquisition significantly increased Bitwise's technical capabilities and staking footprint before the company later reduced its overall workforce.
The staffing changes coincided with a sizable contraction in the Bitwise 10 Crypto Index Fund, ticker BITW. The fund's first-half metrics showed both lower asset values and investor redemptions.
The decline in shares outstanding showed that the fund's contraction reflected investor withdrawals as well as changes in the value of its holdings. Bitcoin also became more dominant within the 10-cryptocurrency portfolio as its weighting increased, leaving more than three-quarters of the fund concentrated in that asset.
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Bitwise executives remain constructive on crypto
Bitwise Chief Investment Officer Matt Hougan said Bitcoin had likely reached the bottom of its bear market because the asset was no longer reacting strongly to negative developments. Hougan cited the Coldcard hack, selling by Strategy and disappointment surrounding the CLARITY Act as examples of bad news that had failed to drive a deeper decline.
Hougan reinforced that view on X only hours before the layoffs surfaced, writing “It’s true.” His comments aligned with Horsley's continued emphasis on growth even as Bitwise reduced staffing and its index business contracted.
Bitwise's cuts also came during a broader wave of workforce reductions across the crypto industry during 2026, with companies citing weaker market conditions, organizational changes and, in several cases, greater use of artificial intelligence.
The broader contraction extended beyond layoffs. By late July, 17 major crypto ventures had closed and about 95 ventures in total had shut down operations during the year.
Bitwise's restructuring leaves the company operating with a smaller workforce than it had immediately after its staking expansion while retaining Chorus One within Bitwise Onchain Solutions. Horsley's comments continued to position staking and broader crypto adoption as areas of expected growth even as the company reduced costs during the market downturn.
This article has been refined and enhanced by ChatGPT.
