April 19, 2024
Bitwise Breaks Ground: First Spot Bitcoin ETF Issuer Reveals Wallet Address
Bitcoin ETF

Bitwise Breaks Ground: First Spot Bitcoin ETF Issuer Reveals Wallet Address

In a groundbreaking move within the crypto investment sphere, Bitwise, a prominent crypto asset manager based in San Francisco, has become the pioneer among the ten spot bitcoin exchange-traded fund (ETF) issuers to unveil its digital wallet address to the public.

On Wednesday, Bitwise took to Twitter to share a screenshot displaying the Bitwise Bitcoin ETF’s (BITB) bitcoin address, along with its holdings totalling 11,858 bitcoins as of January 23. This move signifies a significant leap forward in transparency for the cryptocurrency industry. In their tweet, Bitwise emphasized that “anyone can now verify the fund’s holdings and flows directly on the blockchain,” reflecting a commitment to on-chain transparency, which is fundamental to Bitcoin’s ethos.

Bitwise underscored the importance of transparency in the crypto space, stating, “Onchain transparency is core to Bitcoin’s ethos. We’re proud to walk the walk with BITB. Publishing on-chain addresses is a first step toward increasing public transparency. As infrastructure evolves, we hope to do more, such as working with firms like Hoeski to provide real-time cryptographic attestations.”

The move aligns with the foundational principles of Bitcoin and the broader crypto ecosystem, which prioritize unprecedented levels of transparency. Consequently, there has been a growing demand among industry participants for detailed insights into the financial aspects of various crypto products and services, including recently launched ETFs.

Despite the advent of spot bitcoin ETFs, concerns have arisen among some observers regarding the potential for traditional finance (tradfi) practices to impact bitcoin negatively. There are fears that complex financial instruments and derivatives could alter the nature of bitcoin-based products, akin to what occurred with mortgage-backed securities during the global financial crisis.

Industry experts, however, have largely welcomed Bitwise’s initiative. Balaji Srinivasan, a prominent Silicon Valley investor and former chief technology officer at Coinbase, hailed it as “an important first step toward on-chain accounting.” Nate Geraci, president of investment advisory firm ETF Store, expressed his approval, stating, “Love this from Bitwise… Another example of tradfi-defi bridge building.”

Meanwhile, Arkham Intelligence has already identified Bitcoin wallet addresses from several major players, including Bitwise, BlackRock, Fidelity, and Franklin Templeton. This week, the company also identified wallet addresses for VanEck and WisdomTree, further enhancing transparency within the crypto investment landscape.

At present, Bitwise holds 11,858 bitcoins valued at approximately $474 million, based on the current bitcoin price of just under $40,000. Notably, the asset manager has emerged as the most successful crypto-native ETF issuer to date, attracting $518 billion in inflows over the past eight days. Only spot ETFs from BlackRock and Fidelity have witnessed greater inflows, with roughly $1.8 billion and $1.5 billion, respectively.

Image: Suno

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