Coinfeeds Daily → Bitwise’s Bitcoin ETF Receives BTC Donations After Revealing Wallet Addresses

Bitwise’s Bitcoin ETF Receives BTC Donations After Revealing Wallet Addresses

Published: Jan 25, 2024 | Last Updated: Jan 25, 2024
Howard Kane

Bitwise Asset Management leads in transparency, revealing its Bitcoin ETF Trust's on-chain addresses, spurring community donations and setting a new industry standard.

In a groundbreaking move for the cryptocurrency industry, Bitwise Asset Management has taken a significant step towards transparency by revealing the on-chain addresses of its Bitcoin ETF Trust (BITB). This decision has not only garnered attention but also led to an influx of Bitcoin donations from the crypto community, marking a new era of openness in the world of digital assets.

Bitwise Leads with Transparency

On January 24, Bitwise made history by becoming the first U.S. bitcoin ETF to disclose the on-chain addresses of its holdings. This move allows anyone to verify the ETF's Bitcoin holdings directly on the blockchain, offering an unprecedented level of transparency. The firm's decision was met with enthusiasm from the crypto community, which responded by sending Bitcoin donations and messages to the disclosed address. The Bitwise Bitcoin ETF Trust currently holds 12,338 BTC, valued at approximately $490 million.

Community Response and Donations

The disclosure of the Bitcoin ETF's addresses has not only increased trust among investors but also sparked a unique form of interaction. Community members have sent BTC donations and even inscriptions to the ETF's address, celebrating the transparency. This engagement reflects the crypto community's appreciation for openness and accountability in financial products.

Addressing Security and Compliance Concerns

While the transparency move has been largely praised, it has also raised questions about security and compliance. One concern is the potential receipt of donations from addresses that are not compliant with the Office of Foreign Assets Control (OFAC) regulations. Additionally, Bitwise's use of a legacy single signature (single sig) address for custody has been noted, prompting discussions about the need for more secure solutions. In response, Bitwise has announced plans to upgrade to a Taproot address in collaboration with its custodian, which would enhance security and efficiency.

Will Others Follow Bitwise's Lead?

Bitwise's pioneering approach to transparency has set a new standard in the industry and has led to speculation about whether other spot Bitcoin ETFs will follow suit. The U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETF applicants, including Bitwise, on January 10. The crypto community is now watching closely to see if these other ETFs will adopt similar practices, which could further increase public confidence in the Bitcoin market and potentially pave the way for more widespread adoption of cryptocurrencies.

Enjoyed reading this article? Subscribe for daily market and news updates.
Let me read it first >