1: Welcome and Attendance

All members of the Committee were present at the meeting.

2: Review and Verify All Data Sources for Uptime, Accuracy, and Robustness

The Bitwise Engineering team confirmed that all data sources were working as expected with regard to uptime, accuracy, and robustness.

3: Review and Approve Any Proposed Changes to the Bitwise Crypto Index Methodology

The Committee discussed the following proposed changes to the Bitwise Crypto Index methodology:

a. A proposed change to rule III.A.i.c of the methodology (Crypto Asset Trading Venue Eligibility Requirement).

The rule states that an eligible crypto asset trading venue “Is in compliance with local regulations and not subject to extraordinary regulatory or legal action. This requirement exists to limit trading venues to those that are positive actors in the community, and to limit the potential for interruptions in service or unusual pricing due to government or regulatory enforcement actions.”

The proposed change would replace that language with the following: “Is not subject to extraordinary regulatory or legal action that is likely to lead to unusual pricing, significantly disrupt institutional access to the market, or disrupt fiat withdrawals.”

The Committee voted 3-0 in favor of the proposed adjustment. The change will be effective May 1, 2023.

b. The proposed elimination of rule III.A.iii of the methodology (Crypto Asset Trading Venue Eligibility Requirement).

The rule outlines the “Use of Eligible Crypto Asset Trading Venue Subsets for Calculating New Indexes or Index Variants. The Bitwise Crypto Index Committee may elect to create new indexes, or variations on existing indexes, using defined subsets of the complete list of all Eligible Crypto Asset Trading Venues. For example, an index could be constructed that restricts its pricing inputs from Eligible Crypto Asset Trading Venues selected on the basis of legal domicile of the trading venue, or specific regulatory status of the trading venue, or alternative trading volume minimums, or any other factor that the Committee may elect to use. Any indexes using subsets of the Eligible Crypto Asset Trading Venue will be clearly labeled as such.”

The Committee voted 3-0 in favor of eliminating this rule. The change will be effective May 1, 2023.

c. A proposed change to rule III.B.i.d of the methodology (Crypto Asset Eligibility Requirement).

The rule states that an eligible crypto asset “Trades on two or more Eligible Crypto Asset Trading Venues, without withdrawal issues specific to that crypto asset. This requirement exists to ensure robustness in the trading venue ecosystem supporting any given crypto asset. It guarantees that at least two trading venues support a given asset and that the second (third, fourth, etc.) trading venue(s) is (are) sufficiently robust to maintain smooth trading in the event of a failure at any single trading venue. Note: This rule takes into account withdrawal issues on an asset-by-asset basis at each trading venue.”

The proposed change would replace that language with the following: “Trades on an Eligible Crypto Asset Trading Venue without withdrawal issues specific to that crypto asset.”

The Committee voted 3-0 in favor of the proposed adjustment. The change will be effective May 1, 2023.

d. A proposed change to rule III.B.i.h of the methodology (Crypto Asset Eligibility Requirement).

The rule states that an eligible crypto asset “Has traded more than 5% of its free-float-adjusted market capitalization on Eligible Crypto Asset Trading Venues over the past 30 days. This requirement exists to ensure the crypto assets included in the index are sufficiently liquid to facilitate easy investment and withdrawals.”

The proposed change would replace the 30-day trading volume requirement from 5% to 1%. This adjustment would bring the Bitwise Crypto Asset Index Methodology more in line with comparable traditional market index providers, which have significantly lower liquidity requirements..

The Committee voted 3-0 in favor of the proposed adjustment. The change will be effective May 1, 2023.

4: Review and Approve All Methodological Decisions That Require Judgment

There were no recent methodological implementation decisions that required judgment, nor were there any upcoming decisions to note.

5: Developments Impacting the Market and/or Individual Bitwise Crypto Index Constituents

The Committee discussed a large number of developments impacting the market and/or individual Bitwise Crypto Index constituents, including the SushiSwap smart contract bug that led to an exploit; Ethereum’s recently completed Shapella upgrade; the SEC’s reopening of the comment period for proposed amendments to Exchange Act Rule 3b-16; and the SEC charging Bittrex with operating an unregistered securities exchange, among other topics.

6: Review Expected Changes to Bitwise Indexes

The Committee reviewed the expected changes to the Bitwise Crypto Indexes, and determined that the reconstitution process is running appropriately.

7: Adjournment

The Chair adjourned the meeting.