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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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.

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