Bitwise Just Took $1.8 Billion in a Bear Market, Tom Lee Noticed

Bitwise Asset Management took in more than $1.8 billion of new money in the first half of 2026, chief executive Hunter Horsley said Sunday. Crypto prices fell through most of it.

Tom Lee called the result outstanding. However, the money did not chase prices, as three of the four Bitwise product lines behind that total pay investors an income instead.

Why Lee Called It Outstanding

Horsley posted the figure on Sunday. Net inflows measure new money in, minus money pulled out.

In H1 of this year, amidst a bear market, investors put over $1,800,000,000 into Bitwise products (“net inflows”),” the Bitwise executive shared.

Tom Lee, co-founder and head of research at Fundstrat Global Advisors, commented, lauding the team for growing significantly despite bearing market conditions.

Outstanding results @HHorsley and @Bitwise teamGrowing sharply thru crypto winter https://t.co/GtodnF3Fdk

— Thomas (Tom) Lee (not drummer) FundstratDirect.com (@fundstrat) August 23, 2026

Lee has stayed bullish through the slump. He ranked 17 crypto stocks earlier this week. Bitcoin (BTC) traded near $77,403 on Sunday, little changed.

What the Money Actually Bought

Horsley said four franchises each drew over $100 million. They were:

• ETFs and ETPs (exchange-traded funds and products)
• Private strategies
• Staking, and
• Vaults.

Three of them pay a yield. Bitwise numbers show how much.

Its vault, opened in January with the onchain lender Morpho, targets about 6% a year on stablecoins. Its tokenized Crypto Carry Fund held $259 million by late May and yielded 4%.

Carry sounds complex but is simple. The fund buys crypto, sells futures against it, and keeps the gap.

Staking drew the fastest money. Bitwise’s Solana staking fund passed $500 million just 18 days after listing last November. Rivals now rush to put Ethereum yield in ETPs.

The Fund That Sells Price Alone Shrank

One Bitwise product pays nothing. The Bitwise 10 Crypto Index ETF (BITW) holds a basket of large tokens. Bitcoin and ether are about 91% of it.

Its filings tell the story. Net assets fell from $1.03 billion on December 31 to $678 million on March 31. That is 34% gone in three months.

Two forces did it. Price per share dropped 24%. Investors also cashed out 2.25 million shares, about 13% of the fund.

Cost was not the reason. Bitwise had just cut the fee from 2.50% to 0.75% when the fund joined NYSE Arca in December. The same fund gained 94.8% in 2024.

Staff felt it too. A Bitwise workforce reduction on August 12 cut headcount from roughly 180 to 155.

Net inflows count deposits, not gains. Inside Bitwise, investors paid for yield and walked away from price.