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

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In the wake of past “whoopsie-daisy” moments, US firms are scrambling to restore a semblance of trust in their crypto ETF offerings. The latest to join this frantic dash is Bitwise Asset Management, who, in a stroke of genius (or panic, who’s to say), has introduced daily proof-of-reserves checks for its Bitcoin and Ethereum ETFs.

Out with the old, the tired public wallet listings, and in with the new, shiny professional audit that happens every single trading day. Investors can now rest easy knowing they can check that the on-chain balances match the ETF shares before the first coffee sip of the morning. No more waiting around for an end-of-week audit—because who has time for that? Certainly not Bitwise!

Daily Checks To Boost Confidence

So, what’s the deal here? According to sources (and probably a few brokers who are quietly popping champagne bottles), the new process involves The Network Firm—a US-based accounting company that, unlike the average person with a calculator, actually knows what they’re doing. They’ll be running on-chain balance comparisons each day for the Bitwise Bitcoin ETF (BITB) and the Bitwise Ethereum ETF (ETHW).

Today, we’re introducing third-party Proof of Reserves transparency for the Bitwise Bitcoin ETF $BITB and the Bitwise Ethereum ETF $ETHW, provided by @The_NetworkFirm, a U.S.-based certified public accounting firm.

Live now, you can check daily balance updates on each fund’s…

— Bitwise (@BitwiseInvest) July 15, 2025

Now, just in case you missed the important bit: Bitwise holds a whopping $5 billion in its Bitcoin fund and nearly $360 million in its Ethereum fund. That’s a lot of dough. But instead of making you scramble through addresses and obscure wallets, they’ve got an expert accountant checking it all, because they trust accountants more than your ability to use a spreadsheet.

In case you’ve been living under a rock, this move comes after FTX went belly-up in 2022. Investors learned the hard way that “blind spots” in reserve reporting aren’t exactly great for business. So, Bitwise is ensuring they won’t face any unpleasant surprises. Because, let’s face it, no one likes being hit with a “sorry, no funds today” message after the fact.

Adding CPA Attestations Soon

But wait, there’s more! According to the fine folks at Bitwise, investors will soon get CPA-attested reports. These won’t just show you what the fund owns, but also what it owes. It’s like having your cake and knowing how much sugar you’ve actually put in it. You’ll be able to see the whole balance sheet—assets on one side, liabilities on the other. Because who doesn’t love a good spreadsheet with both sides of the story?

And it’s not all for show, either. It’s a crucial step in preparing for the ever-watchful eyes of US regulators. In a world where crypto is under a magnifying glass, having a CPA sign off on the numbers gives authorities one less reason to start sharpening their pencils. It’s also a surefire way to give investors some peace of mind. You know, just in case you’ve been worried that your ETF shares were hiding a dirty little secret.

Industry Reaction And Comparison

So, what does all this mean for the industry? Well, if other ETF issuers have any sense (and they do, for the most part), they’ll probably take note. BlackRock’s iShares Bitcoin Trust (IBIT), with its eye-popping $86 billion under management, might be the big player in this game. But, as we’ve learned time and again, size isn’t everything—especially when you’re dealing with crypto. In a world where transparency is the hottest new commodity, smaller firms like Bitwise might just steal the show.

Following the FTX disaster, many fund issuers have toyed with monthly or quarterly attestations, but Bitwise is setting the bar higher. Daily checks could soon become the norm. After all, who doesn’t want real-time proof that their investment isn’t about to vanish in a puff of smoke?

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2025-07-17 06:44