Bitwise cuts 14% of staff as crypto layoffs mount during market downturn

Bitwise Asset Management has cut 14% of its staff amid a crypto market downturn, while the company's CEO said the layoffs still position it well for growth.

Bitwise CEO Hunter Horsley told The Block in an emailed statement that the crypto asset manager trimmed its global team to around 155 last week.

Despite the job cuts, Horsley said the adjustment "equips us well for the ongoing growth we've seen this year and expect to continue as crypto further integrates into the global economy."

The crypto asset manager's latest move came amid a prolonged downturn in the crypto market. Its key product, the Bitwise 10 Crypto Index Fund (BITW), shows that its net assets dropped 31% in the first seven months of 2026.

Despite the market pressure, Bitwise has continued to pursue growth through strategic acquisitions. In February, it completed its acquisition of Chorus One, an institutional staking provider, to expand its staking operations.

Layoffs continue

Crypto industry layoffs continued into mid-2026 as companies responded to weaker market conditions and shifted toward AI-driven efficiencies. 

Last month, Polygon Labs announced its second round of layoffs this year as it worked to complete its acquisition of Coinme and shift toward a payments-focused business. 

In June, BitGo cut its staff by 15%, citing changes in the ecosystem. In May, crypto exchange Coinbase reduced its workforce by 14% as the Nasdaq-listed firm navigated a market downturn and shifted toward AI-native operations.

Meanwhile, Bitwise CIO Matt Hougan expressed optimism for the near-term future of the crypto market. Hougan told Bloomberg on Tuesday that bitcoin's resilience against negative news — including the Clarity Act's delay and Strategy selling bitcoin — suggests the bear market may have bottomed out.

Hougan further predicted that large wealth management platforms will be the "quiet catalyst" in the upcoming bull market.