Bitwise Releases Wallet Addresses of Spot Bitcoin ETF Holdings
Increased Transparency Following SEC Approval
Asset management firm Bitwise has pledged to increase public transparency after the U.S. Securities and Exchange Commission (SEC) approved the listing of its spot Bitcoin exchange-traded fund (ETF) shares. This move comes as the firm made the Bitcoin addresses of its ETF holdings publicly available on the blockchain. Bitwise Bitcoin ETF, traded under the ticker BITB on the New York Stock Exchange Arca, currently holds 11,858.63 BTC, valued at approximately $465 million.
Bitwise emphasized the importance of onchain transparency, stating that it is at the core of Bitcoin’s ethos. By publishing the onchain addresses of its holdings, Bitwise aims to increase public trust and demonstrate its commitment to transparency. This move also contributes to the growing trend of asset management firms providing more visibility into their investment vehicles.
Bitwise is the first asset management firm to release the BTC addresses of its holdings. Whether or not other companies will follow suit and provide the same level of transparency remains uncertain. However, Arkham Intelligence recently claimed to have identified several wallets linked to ETFs, including those from Bitwise, BlackRock, Fidelity, and Franklin Templeton.
Bitwise’s decision to release the BTC address was driven by feedback from investors. CEO Hunter Horsley responded to this demand by making the holdings public, a move supported by an overwhelming majority of respondents in an X poll. This commitment to transparency is likely to be well-received by investors and adds to Bitwise’s credibility as a pioneer in the ETF space.
Within just seven days of its launch, Bitwise’s Bitcoin ETF (BITB) quickly became one of the top 5% of ETFs by assets under management in 2023. Despite experiencing around $76 million in net outflows on its seventh day of trading, BITB remains competitive, with Grayscale’s GBTC leading in terms of the largest net outflows.
While Bitwise’s move sets a precedent for transparency, it remains to be seen whether other asset management firms will follow suit. As the ETF market evolves, investors are increasingly demanding more transparency and accountability. Bitwise’s decision to publish its BTC addresses may push other firms to consider doing the same, ultimately benefiting the industry as a whole.
Analyst comment
Positive news: Bitwise Releases Wallet Addresses of Spot Bitcoin ETF Holdings, Increased Transparency Following SEC Approval.
As an analyst, the market is likely to react positively to Bitwise’s commitment to transparency and increased public trust. Other asset management firms may follow suit, leading to more transparency and accountability in the ETF industry. Bitwise’s Bitcoin ETF has already had a successful debut and is poised to continue competing in the market.
