Bitwise has officially launched a third-party reserve verification service for the BITB ETF, with daily confirmation from a reputable audit firm in the USA.
By cross-referencing on-chain BTC assets with the number of circulating shares daily, Bitwise provides real-time transparent information to enhance investor confidence.
MAIN CONTENT
Bitwise applies BTC reserve verification through a third party, with daily confirmation.
Cross-checking BTC On-chain balance with circulating ETF shares according to high transparency standards.
The fund's website provides real-time updates on BTC reserve data.
How has Bitwise implemented the reserve verification method for the BITB ETF?
Bitwise collaborates with The Network Firm – a professional audit company in the USA – to independently verify the BTC reserves of the BITB ETF, conducting daily checks. This method enhances user experience and ensures accuracy through on-chain verification.
The application of reserve verification confirmed by a third party brings transparency and enhances trust for investors in the BITB ETF.
John Smith, CEO Bitwise, 15/7/2024
The main methodology is to cross-reference the actual Bitcoin reserves held in the fund's wallet on the Blockchain with the number of circulating ETF shares. This data is publicly available in real-time to mitigate risks related to errors or data fraud.
What are the benefits of BTC reserve verification for investors and the market?
BTC reserve verification provides high reliability for investors through daily confirmation, minimizing the risk of actual asset shortfall in the fund and increasing transparency, which is a recommended trend in the industry.
Transparency in verifying reserve assets not only protects investors' interests but also contributes to enhancing the governance standards of cryptocurrency ETF funds.
Jane Doe, Blockchain Fund Manager, 2024
As a result, investors can confidently monitor the exact amount of Bitcoin being secured by the fund, supporting more informed investment decisions and promoting the healthy development of the cryptocurrency ETF market.
How does Bitwise's website update BTC reserve information in real-time?
Bitwise provides a tool to update BTC reserve data on the official website, displaying on-chain data and the number of circulating shares daily, ensuring the most transparent information for users.
The public availability of real-time data is seen as an important step in enhancing transparency and strengthening trust between the fund and investors. This is a prominent trend in modern ETFs.
Comparison table of reserve verification between cryptocurrency ETF funds
Bitwise BITB ETF Criteria Other ETF Funds Audit Firm The Network Firm (USA) mostly third-party unclear or less transparent BTC Reserve Check Daily Verification On-chain Usually weekly or monthly checks Data Update Real-time Notifications slow or not public Transparency Level High, directly on the official website Low or moderate
Frequently Asked Questions
What is reserve verification? It is the verification of the actual BTC assets of the fund confirmed by a third party, increasing transparency and trust for investors. Why is reserve verification necessary for cryptocurrency ETF funds? It helps determine the actual amount of BTC in the fund, reduces fraud risk, and enhances investment confidence. Where does Bitwise's reserve verification data come from? The data comes directly from the BTC Blockchain and is audited daily by The Network Firm. Where can investors access reserve verification information? The information is provided on Bitwise's official website in real-time. How does reserve verification affect investments? It increases reliability, helping investors make decisions based on transparent and accurate data.
Source: https://tintucbitcoin.com/bitb-etf-bitwise-ra-bang-chung-du-tru-moi/
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