Bitwise Asset Management demonstrated impressive resilience in the first half of 2026, attracting over $1.8 billion in net new investments. This result is particularly telling against the backdrop of a prolonged bearish trend, when most digital assets were declining.
The company's CEO, Hunter Horsley, released this data on Sunday, emphasizing that investors continued to actively build positions despite unfavorable market conditions. Notably, capital inflows did not correlate with price dynamics: three of Bitwise's four key product lines were generating passive income for investors.
What investors actually bought
According to my data, four areas attracted at least $100 million each. These include exchange-traded funds (ETFs and ETPs), private strategies, staking, and volatility products. Three of these areas generated yield, which became the key factor in their appeal.
For example, the Vault product, launched in January in partnership with on-chain lender Morpho, targets 6% annual returns on stablecoins. The tokenized Crypto Carry Fund managed $259 million in assets by the end of May, delivering 4% yield. The mechanics of this fund are simple: the manager buys cryptocurrency, sells futures on it, and captures the difference.
Staking grew particularly fast. Bitwise's thematic fund on Solana exceeded $500 million in just 18 days after its launch in November. Notably, competitors are also accelerating the rollout of Ethereum yield in ETP format.
Price-focused fund shrank
Not all products showed the same dynamics. The Bitwise 10 Crypto Index ETF (BITW), which invests in major tokens (about 91% of the structure is bitcoin and ether), faced outflows. The fund's net assets declined from $1.03 billion on December 31 to $678 million on March 31 — down 34% for the quarter.
The reasons are obvious: the share price fell 24%, and investors redeemed 2.25 million shares, accounting for about 13% of the fund's capital. Meanwhile, the fee was reduced from 2.50% to 0.75% after listing on NYSE Arca in December. In 2024, the same fund posted growth of 94.8%, highlighting the volatility of such instruments.
Internal processes also reflect the pressure: on August 12, Bitwise underwent a wave of layoffs — headcount decreased from roughly 180 to 155 people.
It is important to understand: net inflows reflect only deposits, not gains from price appreciation. Investors paid for yield, not for price upside.
My analysis: Bitwise's success in attracting capital in a bear market is a clear signal of a paradigm shift. Institutional investors are no longer willing to simply buy "digital gold" hoping for growth. They are seeking instruments with predictable returns, such as staking and carry strategies. This could become the new standard for the entire industry, and issuers that fail to adapt will face a tough road.