Bitwise Crypto Index Committee Meeting (January 2021)
San Francisco • January 25, 2021
Meeting Details
Date: January 25, 2021
Time: 2:00 – 3:00 p.m. PT
Reason for Meeting: Standard Monthly Meeting
In Attendance: Matt Hougan (Chair), Hunter Horsley (Member), David Lawant (Member), Hong Kim (Observer), Satyajeet Pal (Observer)
Meeting Notes
Item 1: Review And Verify All Data Sources For Uptime, Accuracy, And Robustness
Description: The Committee will discuss if there are any issues with the uptime, accuracy, or robustness of our data sources.
Discussion: The Committee found that all data sources are functioning appropriately.
Item 2: Review And Approve All Methodological Decisions That Require Judgment
Description: The Committee will discuss and review any recent methodological implementation decisions that required judgment, as well as any known upcoming decisions.
Discussion 1 – Update to the custody rule: The committee discussed Bitwise Crypto Index Methodology eligibility rule III.B.3.i.e, which requires a cryptoasset to be custodied by a third-party custodian regulated as a trust company in the states of New York or South Dakota, or regulated within other regulatory frameworks deemed comparable by the committee.
The committee unanimously voted in favor to update this rule to require a cryptoasset to be custodied by a list of custodians that will be generated by the committee, which might include additional factors that are deemed important for the index to be investable by institutional investors. All committee members agreed that the evolving market of institutional cryptoasset custody requires a comprehensive analysis of eligible custodians.
Discussion 2 – Update to reconstitution guidelines: The committee agreed to update the Bitwise Crypto Index Methodology rule VI.C.i, to execute the process of asset eligibility at 4:00 p.m. Eastern Time on the third-last business day of each month. The reconstitution continues to take place at 4:00 p.m. Eastern Time on the last business day of the month.
As a result of this change, rule VI.C.ii, with regard to buffer zones, was also altered to include the five-day business-day period prior to the third-business day of the month, instead of the last business day of the month.
Item 3: Developments Impacting The Market And/Or Individual Bitwise 10 Constituents
Description: The Committee will discuss significant new and/or pending developments surrounding either the cryptomarket in general or any Bitwise 10 constituent specifically, and consider whether they raise any concerns or issues for the index.
Discussion: There were no significant developments surrounding either the cryptomarket in general or any Bitwise 10 constituent that could raise concerns for the index.
Item 4: Other Items
The Committee had no further items to discuss.
Item 5: Adjournment
The Chairman adjourned the meeting.
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, ETF.com, 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 www.bitwiseinvestments.com.
