Bitwise, the San Francisco-based crypto asset manager, has become the first among the top ten bitcoin exchange-traded fund (ETF) issuers to share its digital wallet address with the public. The firm took to Twitter to showcase a screenshot revealing the Bitwise Bitcoin ETF’s (BITB) bitcoin address and its holdings, amounting to 11,858 bitcoins as of January 23. This bold step allows anyone to independently verify the fund’s holdings and flows directly on the blockchain.
Bitwise emphasized the significance of onchain transparency, stating that it aligns with bitcoin’s core ethos. The tweet from the company read, “Onchain transparency is core to bitcoin’s ethos. We’re proud to walk the walk with BITB. Publishing on-chain addresses is a first step toward increasing public transparency. As infrastructure evolves, we hope to do more, such as working with firms like Hoeski to provide real-time cryptographic attestations.”
The move is in line with the original design of Bitcoin and the broader crypto ecosystem, which prioritizes an unprecedented level of transparency. Participants in the industry often demand detailed insights into the financials of products and services, especially newly launched ETFs.
The introduction of spot bitcoin ETFs brought concerns from some quarters that traditional finance (tradfi) might follow a similar path it has with other assets – using sophisticated packaging and derivatives to transform once wholesome products into something unrecognizable. The memory of the mortgage-backed security bubble, which led to the global financial crisis 15 years ago, looms large.
Despite the uncertainties surrounding the future of bitcoin, industry experts are commending Bitwise’s move. Prominent Silicon Valley investor and former Coinbase CTO Balaji Srinivasan remarked, “An important first step toward onchain accounting.” Nate Geraci, president of investment advisory firm ETF Store, echoed this sentiment, saying, “Love this from Bitwise. Transparency of ETF wrapper plus onchain transparency. Another example of tradfi-defi bridge building.”
Notably, Arkham Intelligence had already identified bitcoin wallet addresses from other major players in the ETF space, including BlackRock, Fidelity, and Franklin Templeton, earlier in the week. Today, the company revealed wallet addresses for VanEck and WisdomTree. Bitwise, excluding any flows today, holds 11,858 bitcoins valued at roughly $474 million, given the current bitcoin price just under $40,000.
Bitwise has emerged as the most successful crypto-native ETF issuer to date, amassing an impressive $518 billion in inflows over the past eight days. Only spot ETFs from BlackRock and Fidelity have seen more substantial inflows, with roughly $1.8 billion and $1.5 billion, respectively.
In an industry marked by innovation and constant evolution, Bitwise’s move stands out as a testament to its commitment to transparency and accountability. As the crypto landscape continues to develop, such initiatives may pave the way for a more open and trustworthy financial ecosystem, bridging the gap between traditional finance and decentralized finance.
