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Bitwise Leads with Onchain Transparency in Bitcoin ETFs
In a groundbreaking move within the cryptocurrency industry, Bitwise has become the first among the ten spot bitcoin exchange-traded fund (ETF) issuers to share its digital wallet address publicly. The San Francisco-based crypto asset manager revealed this development on Wednesday, showcasing the Bitwise Bitcoin ETF’s (BITB) address and holdings, which stood at 11,858 bitcoins as of January 23. This initiative allows anyone to verify the fund’s holdings and flows directly on the blockchain, marking a significant step towards enhancing transparency in the crypto space.
“Onchain transparency is core to Bitcoin’s ethos,” Bitwise stated, emphasizing its commitment to embodying the fundamental principles of Bitcoin. The company expressed pride in taking this initiative with BITB and plans to increase public transparency further. Bitwise hopes to collaborate with firms like Hoeski to provide real-time cryptographic attestations, pushing the boundaries of transparency and accountability.
Industry Experts Applaud Bitwise’s Initiative
The crypto industry, built on transparency, has often called for more detailed insights into the financials of products and services, including newly launched ETFs. Bitwise’s decision to share its Bitcoin wallet address has been well-received by industry experts, who view it as an important step towards onchain accounting and a demonstration of the potential for traditional finance (tradfi) and decentralized finance (defi) collaboration.
Prominent Silicon Valley investor and former Coinbase CTO Balaji Srinivasan lauded this as an important first step towards onchain accounting. Nate Geraci, president of the investment advisory firm ETF Store, praised Bitwise’s approach, highlighting the combination of ETF wrapper transparency with onchain transparency as an exemplary bridge between tradfi and defi.
Bitwise’s Market Position and Future Prospects
Arkham Intelligence had identified Bitcoin wallet addresses from Bitwise and other major players like BlackRock, Fidelity, and Franklin Templeton earlier in the week. As of the current bitcoin price, just under $40,000, Bitwise holds bitcoins worth approximately $474 million. The asset manager has emerged as the most successful crypto-native ETF issuer, with $518 billion of inflows in the past eight days, trailing only behind BlackRock and Fidelity in terms of inflows, which stand at roughly $1.8 billion and $1.5 billion, respectively.
This move by Bitwise is not just a significant development for the company but also sets a new standard in the ETF industry, particularly for crypto assets. The level of transparency introduced by Bitwise could pave the way for more trust and credibility in the burgeoning field of cryptocurrency ETFs.