Bitwise, a wealth manager, has made history by becoming the first U.S. spot Ethereum (ETH) ETF issuer to publish wallets containing Ethereum tokens. The company recently launched its spot ETH ETF and has committed to transparency by disclosing several Ethereum Name Service (ENS) addresses used to store the tokens.
The ENS addresses simplify Ethereum addresses, which are typically long and difficult to read, by assigning shorter labels such as “abc.eth” to an address. This move by Bitwise allows users and investors to track the fund’s Ether-related activity on-chain. The company has pledged to add more addresses as the fund grows, further enhancing transparency for its investors.
The announcement of the disclosed addresses received praise from the ENS protocol, with a tweet stating that Bitwise’s ETHW fund is now the most crypto-native ETF. This transparency is seen as a significant step forward in the world of cryptocurrency investments, allowing for greater visibility into the fund’s holdings and flows directly on the blockchain.
In addition to Bitwise’s groundbreaking move, the launch of nine spot Ethereum ETFs from eight issuers saw over $361 million in trading volume within the first hour and a half. Ether funds accounted for over 55% of Bitcoin ETF volume in the same opening hour, indicating a strong interest in Ethereum investments.
Despite the flurry of activity surrounding the launch of these ETFs, Ethereum’s market price remained relatively unaffected. Speculation abounds on how Ether will react to the increased trading volume, with some predicting a price increase while others remain cautious.
Overall, Bitwise’s decision to disclose Ethereum addresses for its spot ETH ETF marks a significant milestone in the world of cryptocurrency investments. The move towards greater transparency and accountability is likely to set a new standard for ETF issuers in the future.