Bitwise Crypto Index Committee Meeting (December 2020)

San Francisco • December 22, 2020

Meeting to discuss XRP eligibility in the Bitwise 10 Large Cap Crypto Index.


Meeting Details

Date: December 22, 2020

Time: 4:30 – 5:15 p.m. PT

Reason for Meeting: Discussion of XRP eligibility

In Attendance: Matt Hougan (Chair), David Lawant (Member), Hunter Horsley (Member)

Meeting Notes

Item 1: Discussion of the Securities and Exchange Commission’s Newly Filed Lawsuit Against Ripple Labs, Inc., Bradley Garlinghouse, and Christian A. Larsen, issued December 22, 2020

Description: The Committee met on an emergency basis to discuss whether the SEC’s newly filed lawsuit should cause XRP to be removed from the Bitwise 10 Large Cap Crypto Index.

Discussion: The Bitwise Crypto Index Committee held an emergency meeting to discuss whether the SEC’s newly filed lawsuit against Ripple Labs, Inc., Bradley Garlinghouse, and Christian A. Larsen, issued December 22, 2020, should cause XRP to lose eligibility as an asset in the Bitwise 10 Large Cap Crypto Index (the “Index”).

Rule III.B.i.g of the Bitwise Crypto Index Methodology (the “Methodology”) states that a cryptoasset is only eligible if it “does not face undue risk of being deemed a security under U.S. federal securities laws in the opinion of the Bitwise Crypto Index Committee, given present knowable facts and circumstances.”

The filing of the suit by the SEC as well as the contents of the complaint and related materials were considered and discussed. Given the new facts and circumstances, the Committee voted 3-0 to remove XRP from the Index, concluding a material change to the “risk of being deemed a security.”

Per Rule III.B.ii.b of the Methodology, the asset will be removed from the Index at 4:00 p.m. ET following the conclusion of the meeting and public posting of that notice on our website. As such, the asset will be removed from the Index at 4:00 p.m ET on December 23.

Item 2: Adjournment

The Chairman adjourned the meeting.

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About Bitwise

Based in San Francisco, Bitwise is one of the largest and fastest-growing crypto asset managers, offering both index and active strategies across a wide array of investment vehicles. The firm is known for creating the world’s largest crypto index fund (OTCQX: BITW), a suite of crypto-focused equity and futures ETFs, and investment products that span Bitcoin, Ethereum, DeFi, and NFTs. Bitwise focuses on partnering with financial advisors and investment professionals to provide quality education and research. The team at Bitwise combines expertise in technology with decades of experience in traditional asset management and indexing, coming from firms including BlackRock, Blackstone, Meta, and Google, as well as the U.S. Attorney’s Office. Bitwise is backed by leading institutional investors and asset management executives, and has been profiled in Institutional Investor, CNBC, Barron’s, Bloomberg, and The Wall Street Journal.

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