Ball Multicoin Bitwise Metaverse Index Committee Quarterly Meeting (November 2022)
San Francisco • November 30, 2022
Meeting Details
Date: November 28, 2022
Time: 10:00-11:30 a.m. PT
Reason for Meeting: Standard quarterly meeting
In Attendance: Matt Hougan (Chair), Matthew Ball (Member), Jonathan Glick (Member), Kyle Samani (Member), Shayon Sengupta (Member)
Meeting Agenda
1) Welcome and Attendance
All five members of the Committee were present for the meeting, which took place via Zoom.
2) Review and Verify All Data Sources for Uptime, Accuracy, and Robustness
Description: The Committee will review and verify all data sources contributing to the Ball Multicoin Bitwise Metaverse Index for uptime, accuracy, and robustness.
Discussion: Matt Hougan confirmed that all data sources are working as expected in regard to uptime, accuracy, and robustness.
3) Review and Approve Any Changes to the Ball Multicoin Bitwise Metaverse Index Methodology
Description: The Committee will review and approve any changes to the Ball Multicoin Bitwise Metaverse Index methodology.
Discussion: The Committee voted 5-0 to change rule VI.C.a.ii to remove the words “provided that these assets are not at the one-third cap mentioned above” from the methodology.
4) Discuss and Approve All Methodological Decisions That Require Judgment or Discretion
Description: The Committee will discuss and approve all methodological decisions that require judgment or discretion.
Discussion: The Committee reviewed the following items and arrived at the following conclusions:
A. Metaverse Themes
The index methodology requires that the Committee determine the core thematic categories of crypto assets (“Metaverse Themes”) that are critical to the long-term growth of an open Metaverse each quarter.
The Committee made no changes to the Metaverse Themes used in the index, confirming that the following Metaverse Themes are appropriate:
Asset Ledgers and Interoperability Solutions
Decentralized Finance and Marketplaces
Infrastructure and Tools
Virtual Platforms and Communities
B. Determination of Eligible Crypto Assets
The index methodology assigns the Index Committee the sole responsibility for determining which crypto assets are included within each Metaverse theme.
The Committee reviewed available crypto assets for potential inclusion.
C. Metaverse Theme Weightings
The index methodology requires that the Committee determine the weight assigned to each Metaverse Theme. No theme may represent more than 50% of the index.
The Committee determined that it would retain the rebalance weight for each Metaverse Theme from its last meeting, as listed below:
Asset Ledgers and Interoperability Solutions: 35%
Decentralized Finance and Marketplaces: 20%
Infrastructure and Tools: 35%
Virtual Platforms and Communities: 10%
D. High-Growth-Potential Allocations and Weightings
The index methodology allows the Committee to allocate up to 10% of the weight within each Metaverse Theme on a discretionary basis to projects with high growth potential.
The Committee determined that it would make the following allocations:
Asset Ledgers and Interoperability Solutions
MATIC: +10% allocation
Decentralized Finance and Marketplaces
AAVE: +10% allocation
Infrastructure and Tools
AR: +3.33%
ENS: +3.33%
RNDR: +3.33%
Virtual Platforms and Communities
No boost applied
E. Review the List of Eligible Crypto Asset Trading Venues
The index methodology requires the Committee to review the crypto asset trading venues that are eligible to contribute prices to the asset pricing mechanism.
The Committee completed this review and confirmed that the following venues would qualify:
Binance
bitFlyer
Bitstamp
Bittrex
Coinbase
Gemini
itBit
Kraken
LMAX Digital
5) Developments Impacting the Market and/or Individual Ball Multicoin Bitwise Metaverse Index Constituents
Discussion: The Committee discussed multiple developments that have impacted the crypto market and individual Ball Multicoin Bitwise Metaverse Index constituents, including the collapse of FTX, the potential bankruptcy of Genesis, and more.
6) 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.
