Bitcoin brings transparency to the ETF industry

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Key facts:
  • Bitwise has 11.8 BTC in its ETF wallet.

  • “On-chain transparency is key to Bitcoin’s ethos,” the company stated.

The company specialized in cryptocurrency investments Bitwise revealed the address of the wallet where the bitcoins (BTC) of its ETF (exchange-traded fund) are housed. Of the 10 companies that offer this financial service since January 11, Bitwise is the first to reveal this information.

The now known address shows a balance of 11.85 bitcoins in its possession. According to the CriptoNoticias price index, the amount is equivalent to USD 475,000 at the time of writing this note.

The possibility that Bitwise now offers its investors would not be possible without Bitcoin. Previously, whoever purchased an ETF had to trust the providing company with respect to the assets that back that financial product. Instead, Bitcoin’s transparent and public accounting now allows anyone to do so.

To the inform your decision to publish the wallet address, Bitwise explained that now “anyone can verify BITB holdings and flows directly in Bitcoin ledger”. BITB is the name given to the Bitwise ETF, one of several approved by the United States Securities and Exchange Commission (SEC) two weeks ago.

“Transparency on-chain It is essential to the Bitcoin ethos. “We are proud to walk that path with BITB,” adds the Bitwise publication on the X social network.

Bitwise Bitcoin ETF Address.
The wallet balance corresponding to the Bitwise ETF is almost 12 BTC. Source: mempool.space.

As explained in this newspaper, the bitcoins backing the Bitwise ETF are in the custody of the US exchange Coinbase. Just like this one, other relevant ETFs such as those from BlackRock, Grayscale and ARK are in the same situation.

Although Bitwise is the first to publish the address of its ETF, the intelligence company Arkham has already detected the wallets of other bidders, such as Grayscale (328,509 BTC), WisdomTree (191,179 BTC), BlackRock (44,005 BTC), Fidelity (39,319 BTC ), VanEck (2,829 BTC) and Franklin Templeton (1,305 BTC).

Clarifications on Bitcoin ETFs

It should be noted that, despite the transparency promoted by Bitwise regarding the bitcoins that support its new financial product, buying a bitcoin ETF is not the same as buying bitcoin. To have the cryptocurrency directly, the user must have the private keys to access the funds. This is not the case for those who buy the ETF, which involves having shares that represent ownership or ownership over a portion of the fund, but not bitcoin.

Bitwise ETF Details.
Some technical details about the Bitwise Bitcoin ETF. Source: Bitwise.

Furthermore, transactions relating to ETFs do not necessarily imply an immediate consequence on the Bitcoin network. This is because, as Coinbase is the custodian of many of them, certain movements could be recorded in the exchange’s accounting and, eventually, consolidated with a transaction. on-chain when necessary. In the latter case, movements could be seen in addresses such as the one provided by Bitwise.

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