Bitwise Crypto Index Committee Special Meeting (February 6, 2023)

San Francisco • February 7, 2023

Meeting Details

Date: February 6, 2023

Time: 1:00–2:00 p.m. PT

Reason for Meeting: Special meeting to discuss Buffer Zone Rule implementation

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 Buffer Zone Rule Implementation

At the December 2022 Bitwise Crypto Index Committee meeting, the Committee voted to raise the indexes’ Buffer Zone rule (Rule VI.C.ii) from a 5% threshold to a 10% threshold. This change went into effect for the end-of-January rebalance.

On February 6, 2023, Bitwise research engineers discovered that the higher threshold of 10% was not properly implemented in its rebalancing software, and instead the longstanding 5% threshold remained for the end-of-January rebalance. As a result, certain assets entered (and exited) the indexes during the rebalance that should not have passed the new, higher Buffer Zone rule. Specifically:

  • Cosmos (ATOM) replaced Chainlink (LINK) in the Bitwise 10 Large Cap Crypto Index and the Bitwise 10 ex Bitcoin Large Cap Crypto Index.

  • Sushiswap (SUSHI) replaced Balancer (BAL) in the Bitwise Decentralized Finance Crypto Index.

The Bitwise Crypto Index Committee noted that, as of the date of the discovery, ATOM had appreciably outperformed LINK, and SUSHI had appreciably outperformed BAL since the rebalance date. As a result, if the indexes were reconstituted as of February 6, 2023, both assets would successfully pass the 10% Buffer Zone rule and be retained in their respective indexes.

Given this, the Committee voted 3-0 against reconstituting the index, and confirmed that ATOM and SUSHI should be retained in the indexes until the standard end-of-February rebalance.

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,, 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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