Key Takeaways:
- Bitwise has become the first U.S. spot Ethereum ETF issuer to publish wallets
- Approval of Ethereum ETFs by the SEC marks a significant milestone, likely attracting substantial institutional capital to the Ethereum market.
Bitwise has made history by becoming the first U.S. spot Ethereum (ETH) ETF issuer to publish wallets, fulfilling its commitment to transparency for its ETHW fund.
This move follows the company’s January initiative, where it disclosed public Bitcoin (BTC) addresses for the assets underpinning the BITB spot BTC ETF.
Bitwise announced the Ethereum addresses just before the ETHW and eight other funds started trading, utilizing the Ethereum Name Service (ENS) for clarity. ENS simplifies Ethereum addresses, transforming complex alpha-numeric sequences into easy-to-read labels like “abc.eth.”
This innovation ensures that the ETF’s Ethereum holdings are now verifiable on the blockchain, each linked to a unique ENS subname for straightforward identification.
Five addresses were listed, each associated with a specific ethw.bitwise.eth subname. This transparency allows anyone to verify ETHW’s holdings and transactions directly on the blockchain. It also facilitates the creation of public dashboards and smart contracts that utilize these ENS records, providing a new level of openness and security for investors.
Bitwise’s transparency initiative is crucial, especially in light of past events like the FTX collapse, which tarnished crypto’s reputation.
The company emphasized that cryptocurrency’s inherent openness enables this level of transparency, helping to maintain investor confidence and broaden the appeal of ETFs.
“We’re thrilled to have collaborated with Bitwise to enhance transparency for its new Ethereum ETF using subnames of ethw.bitwise.eth. ETHW is now the most crypto-native ETF,” stated the Ethereum Name Service.
Bitwise plans to add more addresses in the future, with updates available on ethwetf.com. This effort continues from their January disclosure of Bitcoin addresses for the BITB ETF.
The U.S. Securities and Exchange Commission approved registration forms for various firms, including 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco, allowing their spot Ethereum ETFs to begin trading.
Registration forms for Grayscale’s Ethereum Trust and Mini Trust also became effective. VanEck’s head of digital asset research, Matthew Sigel, noted that Grayscale’s Ethereum Trust accounted for an estimated 24% of the initial spot ETH ETF activity.
