Bitwise Reveals Bitcoin ETF Fund Wallet, Attracts Unsolicited Contributions
Bitwise, a major player in the industry, has made the wallet address for its spot Bitcoin ETF fund public. As a result, the wallet has started receiving unexpected contributions from individuals.
People have been sending small amounts of Bitcoin to the wallet, along with BRC-20 tokens, Bitcoin domain names, and Bitcoin NFTs. The total value of these unsolicited assets is over $5,000.
The Chief Investment Officer of Bitwise, Matt Hougan, stated that these assets would eventually benefit the shareholders of the BITB fund. According to Bitwise’s policy outlined in its S-1 filing, any involuntarily received assets can be converted into cash and distributed proportionally among shareholders. In-kind distributions were initially mentioned in previous versions of the filing but were removed in the final approved version.
Handling Funds from OFAC-Sanctioned Addresses
A significant concern within the crypto community is how to handle funds from addresses sanctioned by OFAC (Office of Foreign Assets Control). Certain Bitcoin wallet addresses have been blacklisted by the U.S. Treasury, requiring recipient wallets to block and report any transactions from these addresses.
Matt Hougan addressed this issue by explaining that it is managed at the custodian level. Bitwise uses Coinbase as its custody provider, and Coinbase confirms that it actively blocks OFAC-sanctioned addresses.
To ensure compliance with legal requirements, Bitwise collaborates with clients to block and report funds from sanctioned addresses. Coinbase further elaborates on its approach in a blog post, stating that funds from sanctioned addresses are transferred to and securely held in an internal Coinbase account.
Hot Take: Unsolicited Contributions Highlight Growing Support for Bitcoin ETFs
The unsolicited contributions received by Bitwise’s Bitcoin ETF fund wallet demonstrate the growing support and interest in Bitcoin ETFs. As individuals voluntarily send small amounts of Bitcoin and other assets, it reflects their belief in the potential success and value of such investment vehicles.
This phenomenon also underscores the importance of regulatory compliance when dealing with funds from sanctioned addresses. By working closely with custodians like Coinbase, issuers like Bitwise can ensure that legal requirements are met and address any concerns regarding the source of funds.
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