Bitwise: The First Spot Bitcoin ETF Provider to Offer Wallet Address

• Bitwise Pioneers On-chain Transparency for Bitcoin ETFs
• On-chain Transparency: A Core Value of Bitcoin
• The Goal of Unprecedented Transparency
• Concerns over Traditional Finance Influence on Bitcoin
• Endorsement from Industry Authorities
• Other Bitcoin Wallet Addresses Identified
• Bitwise's Current Holdings

Bitwise Pioneers On-chain Transparency for Bitcoin ETFs

Bitwise, a renowned crypto asset manager, made history as the first of ten spot bitcoin exchange-traded fund (ETF) agencies to disclose its digital wallet address to the public on Wednesday. The disclosure was done through a tweet from the San Francisco-based institution, revealing the Bitwise Bitcoin$42,260 -0.64% ETF's (BITB) bitcoin address and its holdings (11,858 bitcoin) as of January 23. This move allows anyone to verify the fund's holdings and flows directly on the blockchain.

On-chain Transparency: A Core Value of Bitcoin

The company acknowledged that on-chain transparency is integral to bitcoin's ethos. Therefore, Bitwise is proud to uphold this principle with BITB. The organization sees the publication of on-chain addresses as the initial stride towards enhancing public transparency. As infrastructural developments occur, Bitwise aspires to do more, including collaborations with firms such as Hoeski to provide real-time cryptographic attestations.

The Goal of Unprecedented Transparency

Bitcoin, and by extension the entire crypto ecosystem, was conceived with the ambition of achieving an unparalleled degree of transparency. This commitment to transparency often prompts industry participants to seek extensive insights into the financial aspects behind most products and services, including the recently launched ETFs.

Concerns over Traditional Finance Influence on Bitcoin

However, the advent of spot bitcoin ETFs has also sparked worries among some individuals. They fear that the traditional finance industry might manipulate bitcoin in the same way it has other assets by using complex packaging and derivatives to alter once wholesome products into something unrecognizable. A recent example of this manipulation was the mortgage-backed security bubble that precipitated the worldwide financial crisis 15 years ago. The future of bitcoin in this context remains uncertain, but industry specialists are currently lauding Bitwise's initiative.

Endorsement from Industry Authorities

Prominent Silicon Valley investor and former Coinbase chief technology officer Balaji Srinivasan described Bitwise's disclosure as an important first step toward on-chain accounting." Meanwhile, Nate Geraci, president of investment advisory firm ETF Store, praised Bitwise's move, referring to it as another example of traditional finance and decentralized finance bridge building.

Other Bitcoin Wallet Addresses Identified

Bitcoin wallet addresses from Bitwise, BlackRock, Fidelity and Franklin$0.0015 -3.24% Templeton had previously been recognized by Arkham Intelligence earlier in the week. The same company also identified wallet addresses for VanEck and WisdomTree.

Bitwise's Current Holdings

Excluding any flows from today, Bitwise holds 11,858 bitcoins, which is approximately worth $474 million at the current bitcoin price just under $40,000. So far, Bitwise is the most successful crypto-native ETF issuer, with $518 billion of inflows in the last eight days. Only spot ETFs from BlackRock and Fidelity have seen more inflows, at roughly $1.8 billion and $1.5 billion, respectively.

Edited by Jonathan Stoker