Bitwise to Acquire Chorus One as Staking Demand Accelerates
February 4 2026 – Cointelegraph
Bitwise Asset Management has announced a strategic acquisition of Chorus One, a leading institutional staking provider. The deal, confirmed by statements from both firms and reported by Bloomberg, broadens Bitwise’s suite of crypto‑yield services at a time when on‑chain staking products are gaining traction among both retail and institutional investors.
Deal overview
- Target: Chorus One, which offers validator‑as‑a‑service for a range of decentralized networks.
- Staked assets: Roughly $2.2 billion worth of crypto is currently locked with Chorus One, according to the company’s website.
- Financial terms: Not disclosed.
Bitwise did not comment on the transaction at the time of publication, nor did Chorus One, but the acquisition signals the asset manager’s intention to integrate a large‑scale staking operation into its platform.
Why staking is taking off
Staking has become a primary avenue for investors seeking exposure to crypto yields while maintaining a relatively low‑risk profile compared with direct trading. Recent data on the Ethereum validator queue illustrate the surge:
- More than 4 million ETH (approximately 30 % of the total supply) now sit in the staking contract, supported by close to one million active validators.
- The entry queue for new validators has expanded to a length that translates into waits of over 70 days, indicating sustained demand despite the delay.
The appetite for on‑chain yield is reflected not only in Ethereum but also across the broader crypto ecosystem. Major financial institutions are moving to incorporate staking into regulated products:
- Morgan Stanley has filed a proposal for a spot Ether exchange‑traded fund (ETF) that would allocate a portion of its holdings to staking, aiming to deliver passive returns to investors.
- Grayscale is preparing to distribute staking rewards from its Ethereum Trust ETF, marking the first instance of a US‑listed spot crypto ETF providing on‑chain yield payouts.
Context: a booming M&A market
Bitwise’s purchase of Chorus One arrives amid a record‑setting year for cryptocurrency mergers and acquisitions. Throughout 2025, deal activity topped $8.6 billion across 133 transactions, eclipsing the combined total of the previous four years. The wave has been led by industry heavyweight Coinbase, which completed six acquisitions, most notably a $2.9 billion purchase of the derivatives exchange Deribit.
Analyst perspective
- Scale advantage: By absorbing Chorus One’s validator infrastructure, Bitwise can instantly offer institutional clients a diversified staking portfolio covering multiple proof‑of‑stake networks, reducing the time and capital required to build such capabilities in‑house.
- Regulatory positioning: Integrating a regulated staking service may help Bitwise meet the compliance expectations of institutional investors, a crucial factor as regulators increasingly scrutinize crypto yield products.
- Competitive pressure: The move puts Bitwise in direct competition with other asset managers that are either launching staking‑enabled ETFs or partnering with existing validators, intensifying the race to capture a share of the lucrative staking market.
Key takeaways
- Bitwise expands its crypto‑yield offering by acquiring a provider that currently manages over $2 billion in staked assets.
- Staking demand remains robust, evidenced by record‑high validator queues on Ethereum and growing interest from major financial institutions.
- The crypto M&A landscape is at a historic high, with large‑scale deals accelerating consolidation among staking and broader crypto service providers.
- Institutional investors are likely to benefit from increased access to regulated, diversified staking solutions, potentially driving further adoption of on‑chain yield products.
As the staking ecosystem matures, the integration of large validator operations into traditional asset‑management platforms could reshape how investors earn returns from blockchain networks, bridging the gap between decentralized finance and conventional financial services.
Source: https://cointelegraph.com/news/bitwise-acquire-chorus-one-crypto-staking-demand-surges?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
