Key Points
- Bitwise Asset Management becomes the first Bitcoin ETF provider in the US to disclose its on-chain wallet address.
- This move is seen as a significant step towards improving transparency in the crypto industry.
Bitwise Asset Management has made history by becoming the first Bitcoin ETF provider in the US to publicly reveal the on-chain address of its spot Bitcoin ETF (BITB) holdings.
This development is perceived as a significant stride towards enhancing transparency in the crypto industry.
Transparency in the Crypto Industry
The issue of transparency among Bitcoin ETF issuers is a major topic of discussion within the crypto industry. With Bitwise’s latest move, investors can now directly check the asset manager’s Bitcoin holdings on the blockchain, making it easier to confirm the assets are securely locked in.
Bitwise’s co-founder and CEO, Hunter Horsley, underscored the move as a step towards greater transparency. He stated that the company is currently the only US ETP issuer to openly share its wallet addresses.
Unlike traditional assets like gold, which require audits, Bitcoin is stored on a public blockchain. Horsley stated that the blockchain addresses would allow anyone to verify Bitwise’s Bitcoin holdings at any time. He emphasized that Bitcoin is intended to enhance the financial system, not conform to old practices.
Partnership and Investor Reactions
Many in the crypto industry have applauded Bitwise for taking this step. Hoseki, a company that works on Bitcoin proof of reserves, is now partnering with Bitwise to improve industry transparency.
Investors have noticed that there are no outgoing transactions from the published address. Bitwise clarified this by explaining that Coinbase Global Inc, the fund’s custodian, does not reuse Bitcoin addresses after making transactions. A new address is created whenever funds are moved, and Bitwise will update its website with the latest one to maintain transparency. This measure helps safeguard the blockchain against hackers and cybercriminals.
Bitwise manages the third-largest spot Bitcoin ETF, with holdings exceeding $490 million in BTC. The company’s joint Bitcoin and Ethereum ETFs have been approved for listing and trading, adding to the company’s successes this year. Remarkably, Bitwise is focused on transparency and supports Bitcoin development. The company donates 10% of its BITB ETF profits to organizations like the Human Rights Foundation, Open Sats, and Brink.
With ETF providers competing for investors, being open about its Bitcoin reserves is becoming a key way to stand out. Other providers may soon follow Bitwise’s lead to gain trust and attract more investors.
