Chorus One Acquisition by Bitwise Could Open Door to Additional Staked ETF Products
Through its purchase of Chorus One, Bitwise gains staking infrastructure across over 30 blockchain networks, encompassing Solana, Hyperliquid, Monad, Avalanche and Sui.
Digital asset management firm Bitwise has completed the acquisition of Chorus One, a staking infrastructure provider that manages over $2.2 billion in staked digital assets, a move that positions Bitwise to broaden its suite of cryptocurrency staking offerings.
In an announcement made Tuesday, Bitwise revealed that 50 team members from Chorus One will become part of Bitwise Onchain Solutions, a division where billions of dollars in cryptocurrency holdings are currently being staked.
This strategic acquisition positions Bitwise to potentially expand its lineup of exchange-traded products with enhanced staking capabilities, particularly as the Securities and Exchange Commission demonstrates increased openness toward a wider variety of cryptocurrency-based investment vehicles.
Through staking, cryptocurrency token holders can generate rewards, generally ranging from 2% to 10% annually, by committing their tokens to a blockchain network, offering investors supplementary yield in addition to any potential price appreciation of the base token.
Financial terms of the acquisition were not disclosed. Bitwise had not immediately provided a response to requests for additional comment.
According to Bitwise CEO Hunter Horsley, staking continues to represent "one of the most compelling growth opportunities" for the company's thousands of clients who maintain positions in spot cryptocurrency assets.
Acquisition Broadens Bitwise Staking Infrastructure Across Multiple Networks
Through the Chorus One transaction, Bitwise extends its staking operations to encompass more than 30 proof-of-stake blockchain networks, such as Solana, Hyperliquid, Monad, Avalanche, Sui, Aptos and Tezos.
Since 2018, Chorus One has delivered cryptocurrency staking infrastructure solutions to financial institutions, family offices, high-net-worth individuals, custodians, investment funds, cryptocurrency exchanges and decentralized protocols.
According to Bitwise, the entire Chorus One team will be integrated into the company, with Chorus One CEO Brian Crain assuming an advisory position.
With this addition, Bitwise now employs close to 200 staff members globally who oversee cryptocurrency exchange-traded products serving the company's thousands of clients.
Data from February shows Bitwise maintains more than $15 billion in assets under management distributed across over 40 distinct investment products.
The company's primary offerings include the Bitwise Bitcoin ETF (BITB) and the Bitwise Ethereum ETF (ETHW), which have attracted more than $2 billion and $387 million in respective inflows since their launches in January and July of 2024, respectively.
Additional products in Bitwise's portfolio include the Bitwise Solana Staking ETF (BSOL), Bitwise XRP ETF (XRP), the Bitwise Chainlink ETF (CLNK) and the Bitwise Dogecoin ETF (BWOW).