Bitwise Adopts Third-Party Proof of Reserves for ETFs

Bitwise Asset Management, on July 16, announced the implementation of a third-party asset reserve proof of transparency service for its Bitcoin and Ethereum spot ETFs.

This initiative enhances investor trust by increasing fund transparency for Bitwise’s Bitcoin and Ethereum ETFs, crucial investments in the crypto portfolio.

Bitwise Partners with The Network Firm for Reserve Verification

On July 16, Bitwise Asset Management introduced a third-party asset reserve proof for its Bitcoin Spot ETF (BITB) and Ethereum Spot ETF (ETHW). The service is delivered by The Network Firm, a U.S.-registered public accounting firm, marking a significant advancement in transparency for these investment vehicles. This move aligns with previous financial industry trends post-2022, following the FTX collapse, and employs CPA-based audits to verify reserves.

Transparency improvement accompanies this innovation, with daily CPA-attested reports now set to verify asset balances and fund liabilities. Previously, wallet addresses were published for verification. This shift to third-party audits represents a notable step toward enhanced institutional transparency.

Proof of Reserves provided by The Network Firm. View Additional Disclosures.

— Bitwise Asset Management, Official Statement

Market reactions have been relatively neutral, as neither significant comments nor major updates from cryptocurrency key opinion leaders (KOLs) — such as Arthur Hayes, CZ, or Vitalik — were noted around this development. Furthermore, no official stances were recorded from regulatory bodies such as the SEC or CFTC on this specific proof-of-reserves step.

Bitcoin Surge and Transparency Trends in Spot ETFs

Did you know? Bitwise’s adoption of third-party proof-of-reserves for its ETFs mirrors a broader industry response to bolster investor confidence post-FTX 2022, setting new benchmarks in the US market.

Bitcoin, as of July 15, 2025, is priced at $116,632.54, with a market cap of 2.32 trillion and a 24-hour trading volume just under 95.23 billion, according to CoinMarketCap. Over the past 90 days, Bitcoin’s price surged by 38.17%, showcasing notable volatility and investor interest despite a recent 2.84% decrease in the last 24 hours.

Coincu research team suggests this move by Bitwise might lead to increased regulatory scrutiny and a possible trend-setting role for asset transparency in U.S. spot crypto ETFs. Such a development could influence other issuers to follow suit in seeking higher transparency standards, thereby strengthening the digital asset market’s credibility.