Bitcoin ETF

Bitcoin

Read

<div class="cryptonews">
 <p class="is-style-lead">Bitwise has publicly disclosed its Bitcoin ETF fund <a rel="noopener noreferrer nofollow" title="wallet" href="https://thebittimes.com/tag/wallet.html">wallet</a>, attracting unsolicited Bitcoin from ETF supporters.</p>
 <p>Bitwise, a prominent player in the field, became the first issuer of a spot Bitcoin ETF to reveal the <a rel="noopener noreferrer nofollow" title="wallet" href="https://thebittimes.com/tag/wallet.html">wallet</a> address for its fund publicly. Shortly after this disclosure, the <a rel="noopener noreferrer nofollow" title="wallet" href="https://thebittimes.com/tag/wallet.html">wallet</a> began to receive an array of unsolicited contributions.</p>
 <p>Unexpectedly, individuals began sending small quantities of Bitcoin to the wallet, with amounts such as 0.00042069 BTC. Additionally, the wallet received various BRC-20 tokens, Bitcoin domain names, and a collection of Bitcoin NFTs. The total value of these unsolicited assets exceeded $5,000.</p>
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
  <div class="wp-block-embed__wrapper">
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
    <p lang="en" dir="ltr">What happens with those donations being sent to Bitwise’s digital <a rel="noopener noreferrer nofollow" title="wallet" href="https://thebittimes.com/tag/wallet.html">wallet</a> for their spot bitcoin ETF?@Matt_Hougan: "All assets accrue to the <a rel="noopener noreferrer nofollow" title="benefit" href="https://thebittimes.com/tag/benefit.html">benefit</a>s of shareholders of BITB."<br><br>via @Timccopeland pic.twitter.com/X7yLe9BdEf</p>— Nate Geraci (@NateGeraci) January 26, 2024
   </blockquote>
  </div>
 </figure>
 <p>Bitwise Chief Investment Officer Matt Hougan explained that these assets would ultimately benefit the shareholders of the BITB fund. Bitwise’s policy, as detailed in its S-1 filing, indicates that involuntarily received assets may be converted into cash and distributed proportionally among shareholders.</p>
 <p>Previous iterations of the S-1 filing suggested the possibility of in-kind distributions, but this option was omitted in the final approved version.</p>
 <div class="cn-block-related-link">
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"><use xlink:href="#"></use>
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Spot Bitcoin ETFs see $80m net outflows on Thursday
 </div>
 <p>A critical concern raised in the crypto community relates to handling funds from OFAC-sanctioned addresses. The U.S. Treasury has blacklisted certain Bitcoin <a rel="noopener noreferrer nofollow" title="wallet" href="https://thebittimes.com/tag/wallet.html">wallet</a> addresses, requiring any recipient <a rel="noopener noreferrer nofollow" title="wallet" href="https://thebittimes.com/tag/wallet.html">wallet</a> to block and report any transactions from these addresses to the Office of Foreign Assets Control. This presents a unique challenge, given that Bitcoin <a rel="noopener noreferrer nofollow" title="wallet" href="https://thebittimes.com/tag/wallet.html">wallet</a>s cannot refuse incoming funds.</p>
 <p>Hougan addressed this issue, stating that it is managed at the custodian level. Bitwise utilizes Coinbase as its custody provider, and a spokesperson from Coinbase affirmed that the exchange actively blocks OFAC-sanctioned addresses.</p>
 <p>Bitwise’s process indicates collaboration with clients to ensure that funds are blocked and reported in compliance with legal requirements. Coinbase’s approach is further detailed in a blog post, clarifying that funds from sanctioned addresses are transferred to and securely held in a Coinbase internal account.</p>
 <div class="cn-block-related-link">
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"><use xlink:href="#"></use>
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Tokens surge double digits as Bitcoin shrugs GBTC stream
 </div> <span class="google-news-banner__label">Follow Us on Google News</span>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/bitwise-bitcoin-sent-to-etf-wallet-to-benefit-fund-investors-tbt77905.html">https://thebittimes.com/bitwise-bitcoin-sent-to-etf-wallet-to-benefit-fund-investors-tbt77905.html</a></p>

Bitwise: Bitcoin sent to ETF wallet to benefit fund investors

TheBitTimes

Other articles published on Jan 26, 2024

Twitter Analyst Predicts Upside On Altcoins, With Much More Potential On Algotech (ALGT) Presale

Polygon Reportedly Gained Whopping 15.24 Million Users in 2023

Crypto Community Sends Unsolicited Donations to Bitwise After It Reveals the Address Where It Hol...

Swan Bitcoin Expands into Mining, Plans Public Listing

Arken Finance Partners with Arche Fund for Strategic Investment Boost

Bitcoin Expert Hails Crypto’s Sustainability Over the Bond Market and Fiat System

Join our free newsletter for daily crypto updates!