Tom Lee Praises Bitwise as $1.8B Flows Into Crypto Products

Bitwise attracted more than $1.8 billion in net inflows during the first half of 2026 despite challenging crypto market conditions, earning praise from Fundstrat co-founder and head of research Tom Lee.

Bitwise CEO Hunter Horsley disclosed the figure on Sunday, noting that net inflows represent new investor capital after accounting for withdrawals. Lee described the performance as “outstanding,” highlighting Bitwise’s ability to expand while the broader cryptocurrency market remained under pressure.

However, the inflows did not primarily reflect investors chasing higher crypto prices. Three of the four Bitwise product categories responsible for more than $100 million each in inflows offer investors some form of yield.

Those categories included ETFs and ETPs, private strategies, staking products and vaults. Bitwise’s vault, launched with onchain lending protocol Morpho in January, targets an annual yield of around 6% on stablecoins. Meanwhile, its tokenized Crypto Carry Fund had reached $259 million in assets by late May while generating a 4% yield.

Staking also emerged as a major source of demand. Bitwise’s Solana staking fund surpassed $500 million only 18 days after its November listing, underscoring investor appetite for crypto products that combine digital asset exposure with income opportunities.

In contrast, Bitwise’s 10 Crypto Index ETF (BITW), which does not generate yield, experienced significant declines. The fund holds a basket of major cryptocurrencies, with Bitcoin and Ethereum representing roughly 91% of its portfolio.

BITW’s net assets dropped 34% from $1.03 billion at the end of December to $678 million by March 31. Its share price declined 24%, while investors redeemed approximately 2.25 million shares, representing about 13% of the fund.

The decline came despite Bitwise reducing BITW’s management fee from 2.50% to 0.75% when it moved to NYSE Arca in December. The fund had previously gained 94.8% in 2024.

Bitwise also reduced its workforce in August, cutting staff from roughly 180 to 155 employees. Still, the company’s $1.8 billion inflow figure suggests investors remain interested in crypto exposure, particularly products capable of generating yield during weaker market conditions.