Bitwise Crypto Index Committee Meeting (April 2019)

San Francisco • April 25, 2019

Meeting called in accordance with Index Rule “III.A.ii.c” due to New York Attorney General claims toward Tether and Bitfinex.

Meeting Details

Date: April 25, 2019

Time: 4:30 – 5:30 p.m. PT

Reason for Meeting: Meeting called in accordance with Index Rule “III.A.ii.b” due to NY AG claims toward Tether and Bitfinex.

In Attendance: Matt Hougan (Chair), Hunter Horsley (Member), Hong Kim (Observer)

Meeting Notes

Item 1: Response to NY AG Allegation With Regard to Tether and Bitfinex

Explanation: The New York Attorney General has retained a court order against iFinex Inc., operator of the Bitfinex virtual asset trading platform, and Tether Limited, issuer of the “tether” virtual currency, and their related entities, based on allegations of fraudulent behavior while attempting to hide the “apparent loss of $850 million dollars” of co-mingled client and corporate funds.

The Bitwise Crypto Index Methodology Rule III.a.i.c governing the eligibility of cryptoasset exchanges to contribute prices to Bitwise indexes lists the following requirement:

Is in compliance with local regulations and not subject to extraordinary regulatory or legal action.

Explainer: This requirement exists to limit exchanges 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.

A vote was taken to determine if, in light of the New York Attorney General’s court order, Bitfinex should be removed from contributing prices to the indexes.

Conclusion: 2/2 vote yes to remove. Bitfinex is removed from contributing prices to the Bitwise indexes, effective immediately.

Discussion: The removal of this exchange doesn’t substantially harm price discovery or ability to access liquidity, thus being cautious comes at no detriment to the indexes and funds.

About Bitwise

Bitwise Asset Management is the largest crypto index fund manager in America. Thousands of financial advisors, family offices, and institutional investors partner with Bitwise to understand and access the opportunities in crypto. For six years, Bitwise has established a track record of excellence managing a broad suite of index and active solutions across ETFs, separately managed accounts, private funds, and hedge fund strategies. Bitwise is known for providing unparalleled client support through expert research and commentary, its nationwide client team of crypto specialists, and its deep access to the crypto ecosystem. The Bitwise team of more than 60 professionals combines expertise in technology and asset management with backgrounds including BlackRock, Millennium,, Meta, Google, and the U.S. Attorney’s Office. Bitwise is backed by leading institutional investors and has been profiled in Institutional Investor, Barron’s, Bloomberg, and The Wall Street Journal. It has offices in San Francisco and New York. For more information, visit

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