Bitwise Crypto Index Committee Special Meeting (February 14, 2022)
San Francisco • February 15, 2023
Meeting Details
Date: February 14, 2023
Time: 1:00–2:00 p.m. PT
Reason for Meeting: Special meeting to discuss the Hard Fork Rule.
In Attendance: Matt Hougan (Chair), Hunter Horsley (Member), Hong Kim (Member)
Meeting Notes
1: Welcome and Attendance
All members of the Committee were present at the meeting.
2: Discussion of Hard Fork Rule
Committee Chair Matt Hougan proposed a change to the Hard Fork Rule to adopt the following language:
Hard forks are new crypto assets that are granted to holders of existing crypto assets when portions of the consensus nodes adopt different policies. When a significant hard fork occurs, the Bitwise Crypto Index Committee will determine which asset will count as the continuing asset and which asset will be the new "hard fork asset." The Committee will rely on a variety of factors when making this calculation, including the relative market capitalization of each asset.
The act of claiming a hard fork requires agency on the part of crypto asset holders and also introduces risk. As such, the Bitwise Crypto Indexes do not incorporate the value of forked assets into index values. It is our expectation that fund managers tracking Bitwise Crypto Indexes may well take action to idiosyncratically claim hard fork assets, and that the value of those rewards will return to those funds as excess returns.
The Committee voted 3-0 to adopt the new language.
3: Adjournment
The Chair 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.
