Crypto ETFs Get A Confidence Boost As Bitwise Adds Proof Of Reserves

Bitwise Asset Management has introduced daily proof-of-reserves checks for its Bitcoin ETF (BITB) and Ethereum ETF (ETHW). This means that a third-party accounting firm, The Network Firm, will verify the balances of these ETFs every trading day to ensure they match the number of ETF shares outstanding. Bitwise currently holds $5 billion in its Bitcoin fund and nearly $360 million in its Ethereum fund. In addition to these daily checks, Bitwise plans to release CPA-attested reports within weeks, covering both the assets and liabilities of the funds. This move is intended to increase transparency and confidence in crypto ETFs, especially after the FTX collapse. Other ETF issuers, including BlackRock, may follow suit by providing more frequent proof of reserves.