Bitwise Bitcoin ETF Makes History as First to Disclose On-Chain Addresses for Unprecedented Transparency
The Bitwise Bitcoin ETF (BITB) has become the first among the 11 approved funds to publicly disclose the on-chain addresses of its holdings.
This major decision by Bitwise marks a significant step towards enhancing transparency and providing open verification for investors.
Aligning with the fundamental principles of Bitcoin (BTC), which emphasize transparency and openness, Bitwise’s move allows for public eyeing of BITB’s holdings directly on the blockchain.
The company also revealed its plans to extend these efforts further, with potential collaborations on the horizon, including partnerships with firms such as Hoseki, aiming to facilitate real-time cryptographic attestations.
By unveiling the Bitcoin addresses of its holdings, BITB introduces a new level of transparency for investors. This disclosure allows investors to independently verify the ETF’s holdings on the blockchain, ensuring accuracy and security.
Nevertheless, it is crucial for investors to recognize that the addresses published by Bitwise serve as proof of the asset holdings and not as proof of the firm’s reserves.
It is also worth noting that in the realm of spot Bitcoin ETFs approved by the U.S. Securities and Exchange Commission (SEC), BlackRock and Fidelity’s offerings have emerged as leaders. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) collectively attracted 70% of all inflows into spot BTC exchange-traded products.
With inflows of $1.9 billion and $1.6 billion, respectively, these two ETFs swiftly surpassed $1 billion in assets under management (AUM), outperforming counterparts from asset managers like Bitwise and ARK 21Shares, which recorded over $500 million in inflows.
In contrast, Grayscale’s Bitcoin Trust (GBTC) witnessed substantial outflows, shedding nearly $4 billion in value shortly after the SEC greenlit spot ETFs.
Despite being the largest spot BTC ETF with a market capitalization exceeding $20 billion and holding more than 500,000 Bitcoins, Grayscale transferred about 93,700 BTC to Coinbase Prime wallets. This move appeared to exert selling pressure on BTC, as the fund liquidated tokens to meet redemption demands.
