Bitwise’s Fund Wallet Receives Unexpected Gifts
Earlier this week, Bitwise, the first spot bitcoin exchange-traded fund issuer to publish its fund wallet, received unexpected gifts. Users sent small amounts of bitcoin, BRC-20 tokens, Bitcoin domain names, and various Bitcoin NFTs to the wallet, totaling more than $5,000. When asked about this, Bitwise CIO Matt Hougan stated that all assets accrued to the benefits of shareholders of BITB.
Concerns About OFAC-sanctioned Addresses
Another issue raised by crypto commentators is the use of OFAC-sanctioned addresses. The United States Treasury has sanctioned certain bitcoin wallet addresses, and any funds received from those addresses must be blocked and reported to the Office of Foreign Assets Control. However, wallets cannot prevent funds from being sent to them. Bitwise addresses this issue at the custodian level by using Coinbase as its custody provider. Coinbase blocks OFAC-sanctioned addresses and ensures compliance with the law.
The spokesperson for Coinbase referred to a blog post that explains how funds associated with sanctioned addresses are transferred to a secure internal holding account.
Hot Take: Bitwise’s Openness Attracts Unexpected Gifts
Bitwise’s decision to publicly publish its fund wallet has resulted in unexpected gifts from users in the form of bitcoin, tokens, domain names, and NFTs. This demonstrates the level of interest and engagement within the crypto community. However, concerns have been raised regarding OFAC-sanctioned addresses and their impact on the fund. Bitwise addresses this issue by working with Coinbase as its custodian, ensuring compliance with regulations and blocking any transactions involving sanctioned addresses. Overall, Bitwise’s openness has not only attracted gifts but also highlighted important considerations surrounding crypto investments.
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