Bitwise Introduces Third-Party Verification for Crypto ETFs
- Bitwise’s launch enhances ETF transparency with third-party verification.
- Daily reconciliation advances custodial standards.
- CPA-attested reports will further boost investor confidence.
Bitwise Asset Management has launched a third-party asset verification service for its Bitcoin and Ethereum spot ETFs. The new procedure includes daily on-chain verification of holdings and reconciliation with the shares outstanding, based in the United States.
This move by Bitwise Asset Management marks a significant advancement in crypto ETF transparency. It potentially influences institutional investment behavior by aligning with increasing expectations for verifiable asset backing and public reporting.
Bitwise has introduced a third-party verification system for Bitcoin and Ethereum ETFs, enhancing transparency. Daily on-chain verification and reconciliation support investor confidence. Experienced in traditional finance, Bitwise’s leadership strengthens their institutional investment focus.
“Bitwise is 100% focused on crypto, but many of our experts come from traditional finance, putting us in a unique position to accompany investors on their journey into this new and unique investment class.” — Bradley Duke, Head of Europe, Bitwise
The verification service aims at setting new standards in custodial transparency for ETFs. It incorporates feedback from past initiatives such as publishing wallet addresses. Bradley Duke, Head of Europe, emphasized the importance of blending traditional finance expertise with emerging crypto assets.
The immediate impact is improved cryptographic assurance for Bitcoin and Ethereum ETFs. This enhancement could foster increased institutional capital flow into the market, reflecting positively on investor sentiment and market dynamics.
Financial implications include the potential for new inflows into Bitwise products, reinforcing their status among institutional investors. The move also aligns with evolving market expectations for crypto asset transparency and regulatory preferences observed globally.
The industry might see accelerated adoption of proof-of-reserves protocols across more funds. Historically, improved transparency has led to confidence and inflows, a trend Bitwise seeks to capitalize on to enhance their market position.
