Bitwise Supercharges Crypto ETF Trust With Proof of Reserves—Here’s Why It Matters

Crypto just got a credibility shot in the arm. Bitwise Asset Management—one of the biggest players in crypto ETFs—just rolled out proof of reserves for its flagship fund. No more 'trust us, bro.' Now it's 'verify us, blockchain.'

Wall Street's finally playing by crypto rules. The move comes as institutional investors demand transparency after 2022's parade of implosions. Bitwise's audit trail could set a new gold standard—assuming traditional finance doesn't water it down to 'proof of vaguely adequate reserves.'

This isn't just about accountability. It's a direct challenge to the old guard. While banks still balance books with spreadsheets from 1987, crypto ETFs now offer real-time asset verification. Take that, Jamie Dimon.

The kicker? This could floodgates for institutional money. When pension funds see cold, hard blockchain proofs instead of Moody's asterisk-riddled reports, even the most skeptical allocators might dip a toe in.

Of course, Wall Street will find a way to screw this up eventually—probably by packaging reserve proofs into synthetic CDOs. But for now? A rare win for transparency in the financial circus.

Daily Checks To Boost Confidence

Based on reports, the new process taps The Network Firm, a US accounting company, to run on‑chain balance comparisons each day. The checks cover 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

Bitwise holds $5  billion in its bitcoin fund and nearly $360 million in its Ethereum fund. The audit matches these amounts against the number of ETF shares out there. It’s a simple idea, but it puts an expert eye on the numbers rather than leaving investors to track addresses on their own.

The MOVE comes after the collapse of FTX in 2022 showed how blind spots in reserve reporting can leave investors stranded. Back then, missing assets only came to light when it was too late. By running daily checks, Bitwise is making sure it won’t face a surprise shortfall.

Adding CPA Attestations Soon

According to the firm, investors will also get CPA‑attested reports within weeks. Those reports will cover not only assets but also liabilities. That means you’ll see both sides of the balance sheet. With that extra layer, shareholders can see what the fund owes as well as what it owns.

This step isn’t just for show. It helps with regulatory reviews as US authorities tighten their grip on crypto products. Having a certified accountant sign off on the numbers gives regulators a clear path for verification. It also means more peace of mind for anyone wary of hidden risks.

Based on expert commentary, other ETF issuers will likely take note. BlackRock’s iShares Bitcoin Trust (IBIT) currently manages $86 billion—by far the largest fund in this space. But size alone won’t cut it if investors demand proof of reserves. Smaller players like Bitwise could outshine bigger rivals by being more open about their holdings.

Fund issuers in the US have watched closely since the FTX fallout. Many have toyed with monthly or quarterly attestations, but daily checks raise the bar. Investors who want real‑time peace of mind might soon expect proof of reserves on a daily basis.

Featured image from Coinmama, chart from TradingView