Bitwise Asset Management is boosting investor confidence in its Bitcoin and Ethereum ETFs by implementing daily proof-of-reserves checks. This is a big deal, especially after the FTX collapse highlighted the dangers of opaque reserve reporting.
Daily Audits: A New Level of Transparency
Instead of just publicly listing wallet addresses, Bitwise now uses The Network Firm, a US accounting company, to verify daily that the on-chain balances of its Bitwise Bitcoin ETF (BITB) and Bitwise Ethereum ETF (ETHW) match the number of outstanding ETF shares. This happens before the market opens, giving investors daily assurance. Bitwise manages about $5 billion in its Bitcoin fund and nearly $360 million in its Ethereum fund.
Bitwise’s tweet announcing the change:
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
Going Beyond Daily Checks: CPA Attestations on the Way
Bitwise is also promising soon to release CPA-attested reports. These reports will show both the fund’s assets and liabilities, giving investors a complete picture of the fund’s financial health. This added layer of verification is not only good for investor confidence but also helps satisfy increasingly strict US regulatory scrutiny.
Setting a New Standard?
Experts predict that other ETF providers, even giants like BlackRock (which manages the much larger iShares Bitcoin Trust), will likely follow suit. While sheer size has been a selling point, investors may increasingly demand this level of transparency. Bitwise’s proactive approach could give them a competitive edge. The FTX debacle showed the importance of real-time transparency, and daily proof-of-reserves checks might become the new industry standard.
