Bitwise’s Bold Play: Crypto Giant Acquires Chorus One to Dominate Staking Market

In a move that’s sending shockwaves through the cryptocurrency industry, Bitwise Asset Management, one of the world’s leading crypto asset managers, has announced its acquisition of Chorus One, a pioneering staking infrastructure provider overseeing more than $2.2 billion in staked assets. This strategic acquisition marks a significant expansion of Bitwise’s crypto staking capabilities and could reshape the competitive landscape of institutional-grade crypto services.

The Deal That’s Changing Everything

Bitwise revealed on Tuesday that it has acquired Chorus One, bringing 50 of the staking specialist’s employees into Bitwise Onchain Solutions. The acquisition represents more than just a headcount increase—it’s a calculated move to position Bitwise at the forefront of the rapidly growing crypto staking market.

While the financial terms of the deal remain undisclosed, the strategic value is crystal clear. Bitwise already has several billion dollars worth of crypto assets staked across its platforms, and this acquisition significantly amplifies that capability.

Why Staking Matters More Than Ever

For those new to the crypto space, staking represents one of the most innovative ways to generate passive income in the digital asset world. Unlike traditional proof-of-work blockchains like Bitcoin, proof-of-stake networks allow token holders to lock up their assets to help secure the network and validate transactions. In return, stakers earn rewards—typically ranging from 2% to 10% annually, depending on the network and market conditions.

“Think of staking as earning interest on your crypto holdings,” explains a Bitwise spokesperson. “It’s like putting money in a high-yield savings account, but instead of a bank paying you interest, you’re helping to secure a decentralized network.”

Expanding Horizons Across 30+ Chains

The acquisition dramatically expands Bitwise’s staking footprint across more than 30 proof-of-stake blockchain networks. This includes major players like Solana, Hyperliquid, Monad, Avalanche, Sui, Aptos, and Tezos—giving Bitwise clients unprecedented access to staking opportunities across the crypto ecosystem.

This diversification is particularly strategic given the current regulatory environment. The Securities and Exchange Commission has shown increasing openness to a wider range of crypto investment products, and staking-focused exchange-traded products represent a significant growth opportunity.

Chorus One’s Impressive Track Record

Founded in 2018, Chorus One has established itself as a trusted name in crypto staking infrastructure. The company has served a diverse client base including traditional finance firms, family offices, high-net-worth individuals, custodians, investment funds, exchanges, and decentralized protocols.

What makes Chorus One particularly valuable is its technical expertise and operational excellence in managing staking infrastructure—a complex undertaking that requires sophisticated systems, robust security measures, and deep blockchain expertise.

Leadership Continuity and Vision

In a move that signals confidence in the acquisition, Bitwise has retained Chorus One’s entire team, including CEO Brian Crain, who will take on an advisory role within the larger organization. This continuity ensures that the technical knowledge and client relationships built over years won’t be disrupted.

Hunter Horsley, CEO of Bitwise, emphasized the strategic importance of staking, calling it “one of the most compelling growth opportunities” for the firm’s thousands of clients who hold spot crypto assets. This acquisition positions Bitwise to capitalize on that growth trajectory.

Bitwise’s Expanding Empire

With this acquisition, Bitwise now boasts nearly 200 employees worldwide and manages crypto exchange-traded products for thousands of clients. As of February, the firm has over $15 billion in assets under management across more than 40 investment products—a remarkable achievement in the competitive crypto asset management space.

The company’s flagship products, the Bitwise Bitcoin ETF (BITB) and the Bitwise Ethereum ETF (ETHW), have already accumulated impressive flows since their launches in January and July 2024, respectively. BITB has attracted over $2 billion in flows, while ETHW has drawn in $387 million, demonstrating strong institutional and retail demand for regulated crypto investment vehicles.

A Diverse Product Suite

Beyond its core Bitcoin and Ethereum offerings, Bitwise has been aggressively expanding its product lineup to meet diverse investor needs. The firm offers specialized products including the Bitwise Solana Staking ETF (BSOL), Bitwise XRP ETF (XRP), Bitwise Chainlink ETF (CLNK), and even the Bitwise Dogecoin ETF (BWOW).

This product diversity, combined with enhanced staking capabilities from the Chorus One acquisition, positions Bitwise as a comprehensive provider of crypto investment solutions.

Market Implications and Future Outlook

Industry analysts view this acquisition as a clear signal that institutional interest in staking services remains strong, despite market volatility and regulatory uncertainty. By acquiring Chorus One, Bitwise is betting that staking will continue to be a significant source of yield for crypto investors and a key differentiator in the competitive crypto asset management market.

The timing is particularly noteworthy given recent developments in the ETF space and growing institutional comfort with crypto products. As more traditional investors seek exposure to digital assets, services that generate yield—like staking—become increasingly attractive.

The Competitive Landscape

Bitwise’s move puts pressure on other crypto asset managers to enhance their staking capabilities. Firms that have been slow to develop institutional-grade staking services may find themselves at a competitive disadvantage as demand for yield-generating crypto products continues to grow.

The acquisition also highlights the ongoing consolidation in the crypto infrastructure space, as larger players seek to acquire specialized expertise rather than building capabilities from scratch.

Looking Ahead

As the crypto industry matures, services that bridge the gap between traditional finance and digital assets will likely see continued growth. Staking represents one of the clearest value propositions for crypto holders, and Bitwise’s acquisition of Chorus One positions the firm to be a dominant player in this space.

With regulatory clarity improving and institutional adoption accelerating, the timing of this acquisition suggests Bitwise sees significant growth ahead in the staking market. For investors, this could mean more sophisticated, secure, and accessible staking options through regulated investment vehicles.

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