In an unprecedented move toward transparency in the evolving cryptocurrency ETF landscape, asset management company Bitwise has publicly disclosed the wallet addresses holding Bitcoin for its cash exchange-traded fund (ETF).
Bitwise, which holds over 11,858 BTC worth approximately $465 million, recently became the first spot Bitcoin ETF issuer to disclose on-chain details of its holdings.
TLDR
- Bitwise became the first Bitcoin ETF issuer to disclose its BTC wallet address, holding 11,858 BTC worth approximately $465 million.
- The wallet received more than 16,000 inscriptions worth more than $6,000, including rare Bitcoin ordinals such as RSIC airdrop, Bitcoin punk, Bitcoin store, etc.
- The move was driven by investor demand for greater transparency, with 91.1% supporting address disclosure in a Twitter poll by Bitwise.
- Arkham Intelligence claimed to have identified the wallet addresses of other major BTC ETFs such as BlackRock, Fidelity, and Franklin Templeton.
- According to Arkham, VanEck reportedly holds about 2,770 BTC worth about $111 million, while WisdomTree reportedly holds 191 BTC worth $7.67 million.
Beyond simply increasing transparency, Bitwise’s ETF addresses are attracting public attention and participation.
Within hours of being revealed, the wallet was receiving an influx of tips and donations, including more than 16,000 inscriptions worth more than $6,000. These inscriptions range from rare Bitcoin ordinals such as RSIC airdrops and Bitcoin punks to the more common BRC-20 tokens. This level of public participation reflects growing interest in cryptocurrency investment vehicles.
According to Bitwise CEO Hunter Horsley, this decision stemmed from clear feedback from ETF investors demanding more transparency. A Twitter poll found that more than 91% of respondents support public wallet addresses. As the first company to acquiesce to these demands, Bitwise is setting a precedent that other companies may soon follow.
Very cool. However, it would be a good idea to verify that there is at least one transaction being spent on the address. Honestly I’m shocked they didn’t test it before putting ~12,000 BTC in there???? https://t.co/RpNqyWBs1T https://t.co/DtSC09D9rs pic.twitter.com/rKDSgTsWaf
— Alexander Reishman ??????? (@Leishman) January 24, 2024
Industry research firm Arkham Intelligence claimed it had already identified addresses linked to other major companies such as BlackRock, Fidelity and Franklin Templeton. Although not confirmed, this suggests that efforts are underway to reveal the holdings of other Bitcoin ETFs. Arkham also revealed information about VanEck and WisdomTree, showing that they hold approximately 2770 BTC ($111 million) and 191 BTC ($7.67 million) respectively.
Update: The VanEck and WisdomTree ETF addresses are now on Arkham.
Seven ETFs were reduced, leaving three.
Next is ARK, Invesco, Valkyrie ????
There is a link in the following tweet. https://t.co/O4eTPrDmbc pic.twitter.com/U8CQkEGQN6
— Arkham (@ArkhamIntel) January 24, 2024
For an asset class built on the principles of transparency, verifiability, and trustworthiness, the opaque nature of cryptocurrency ETFs has created an irony. As publicly traded securities, these funds are highly regulated. Strict confidentiality ensures that fund managers do not reveal their strategies or compromise their prices during large trades. But for cryptocurrencies that are intended to operate as “public ledgers,” this conflicts with the spirit of radical transparency.
By splitting the difference, Bitwise sends a signal to cryptocurrency purists while meeting its regulatory obligations. By making your wallet address public, investors can check their holdings without disclosing their manual or intent. The ETF will continue to trade normally, but its Bitcoin holdings will now be visible on the blockchain.
But beyond mere symbolism, Bitwise’s “proof of reserves” could put pressure on competitors to follow suit.
By raising expectations, previously opaque holdings are revealed to the public. Just as institutional skepticism has prevented companies from offering cryptocurrency products, now cryptocurrency-based transparency standards could force their hand. To catch up with the frontrunners, other ETF issuers may need to disclose at least a surface level of blockchain reserves. In the long term, this move could improve the accountability of managed cryptocurrency funds.