Bitwise Acquires Staking Pioneer Chorus One, Bolstering Crypto Staking Product Expansion

Crypto asset manager Bitwise has announced its acquisition of Chorus One, a prominent staking services company. This strategic move, which significantly expands Bitwise’s capabilities in the rapidly growing crypto staking sector, sees Chorus One bring over $2.2 billion in staked assets under its management and a team of 50 experienced employees to Bitwise Onchain Solutions. The acquisition is poised to accelerate Bitwise’s efforts to diversify and enhance its portfolio of crypto staking products, aligning with a broader trend of increased regulatory support for a wider array of crypto investment vehicles, as evidenced by the Securities and Exchange Commission’s (SEC) receptiveness to new crypto exchange-traded products.

Staking, a core component of many proof-of-stake blockchains, allows cryptocurrency holders to earn rewards by locking their tokens on the network, thereby supporting its operations and security. These rewards typically range from 2% to 10% annually, offering investors an additional layer of yield on top of the potential appreciation of the underlying digital assets. This passive income generation mechanism has become increasingly attractive to both retail and institutional investors seeking to maximize returns in the digital asset space.

While the financial terms of the acquisition were not disclosed, the integration of Chorus One’s expertise and infrastructure is expected to be a significant catalyst for Bitwise’s growth strategy. Bitwise CEO Hunter Horsley has previously highlighted staking as "one of the most compelling growth opportunities" for the company’s extensive client base, which includes thousands of holders of spot crypto assets. This sentiment underscores the strategic importance of this acquisition in Bitwise’s mission to provide comprehensive and accessible crypto investment solutions.

The acquisition of Chorus One is particularly impactful as it significantly broadens Bitwise’s staking reach across a multitude of blockchain networks. Chorus One’s existing infrastructure supports over 30 proof-of-stake chains, including prominent ecosystems such as Solana, Hyperliquid, Monad, Avalanche, Sui, Aptos, and Tezos. This expansion into a more diverse set of blockchains will enable Bitwise to offer staking opportunities on a wider array of cryptocurrencies, catering to a broader spectrum of investor interests and risk appetites.

Chorus One, established in 2018, has built a strong reputation for providing robust crypto staking infrastructure services to a sophisticated clientele. This includes finance firms, family offices, high-net-worth individuals, custodians, investment funds, cryptocurrency exchanges, and decentralized protocols. Their deep technical expertise and established operational track record in the staking domain are invaluable assets that Bitwise will now integrate into its operations. The Chorus One team, including its CEO Brian Crain, will be joining Bitwise, with Crain taking on an advisory role, ensuring a smooth transition and the continued leverage of their specialized knowledge.

With the addition of the Chorus One team, Bitwise now boasts a global workforce of nearly 200 employees dedicated to managing its expanding suite of crypto exchange-traded products for its thousands of clients. This growth in personnel reflects the company’s commitment to scaling its operations to meet the increasing demand for diversified crypto investment vehicles.

As of February, Bitwise manages over $15 billion in assets across more than 40 distinct investment products. The company’s flagship offerings include the Bitwise Bitcoin ETF (BITB) and the Bitwise Ethereum ETF (ETHW). Since their respective launches in January and July of 2024, these ETFs have seen substantial investor inflows, accumulating over $2 billion and $387 million, respectively. These figures highlight the strong market appetite for regulated, accessible exposure to major cryptocurrencies.

Beyond its Bitcoin and Ethereum offerings, Bitwise has also successfully launched other specialized crypto ETFs. These include the Bitwise Solana Staking ETF (BSOL), which offers exposure to Solana while incorporating staking rewards, the Bitwise XRP ETF (XRP), the Bitwise Chainlink ETF (CLNK), and the Bitwise Dogecoin ETF (BWOW). The diversification of these products demonstrates Bitwise’s strategy to cater to various segments of the cryptocurrency market and provide investors with tailored investment solutions.

The acquisition of Chorus One represents a significant step forward in Bitwise’s strategy to solidify its position as a leading provider of crypto investment products. By integrating Chorus One’s extensive staking infrastructure and expertise, Bitwise is well-positioned to capitalize on the continued growth of the staking economy and offer innovative, yield-generating opportunities to its clients within a regulated framework. This move signals a clear commitment to expanding its product offerings and deepening its involvement in the operational aspects of blockchain technology, beyond simply providing investment exposure. The synergy between Bitwise’s established investment management capabilities and Chorus One’s specialized staking services creates a powerful combination that is set to redefine the landscape of crypto staking products available to institutional and retail investors alike.