What is Bitwise’s BITB spot bitcoin ETF?
The Bitwise Bitcoin ETF (BITB) is an exchange-traded fund from the digital asset management firm Bitwise Investment Advisors. On Jan. 11, 2024, it joined 10 other exchange-traded products as one of the first spot bitcoin ETFs approved by the U.S. Securities and Exchange Commission.
What is a spot bitcoin ETF?
A spot bitcoin ETF allows investors to forgo direct bitcoin ownership but still gain exposure to the cryptocurrency's price movements. Investors can buy shares of the ETF through their brokerage accounts, which represent ownership of a portion of the Bitcoin held by the fund. Trading of the ETF shares occurs on traditional stock exchanges, providing investors with liquidity and ease of access to Bitcoin exposure.
What is BITB's issuer Bitwise?
Bitwise is a cryptocurrency asset management firm that offers investment solutions focused on cryptocurrencies. They provide a range of crypto investment funds, including index funds, liquid beta funds, and innovative strategies tailored to different investor needs. Bitwise aims to provide institutional-grade crypto investment products to investors while prioritizing transparency, security, and regulatory compliance.
What fees does BITB charge?
BITB maintains a sponsor fee of 0.20%, which might change.
How does Bitwise's ETF differ from other spot bitcoin ETFs?
Bitwise was the first firm to disclose the public addresses for its spot bitcoin ETF. It did so in the spirit of on-chain transparency.
"Today the Bitwise Bitcoin ETF (BITB) becomes the first U.S. bitcoin ETF to publish the bitcoin addresses of its holdings," Bitwise said while announcing its bitcoin addresses. "Now anyone can verify BITB's holdings and flows directly on the blockchain."
Bitwise is also one of the few spot bitcoin ETFs listed on NYSE Arca, along with Grayscale Investment's GBTC and Hashdex's DEFI funds.
How does Bitwise's BITB custody its bitcoin?
The ETF's digital asset custodian is Coinbase Custody Trust LLC, the most popular custodian for spot bitcoin ETF issuers. The fund's trust custodian is BNY Mellon.
Are Bitwise's Bitcoin addresses public?
Yes, and the firm announced the addresses on Jan. 24, 2024.
Disclaimer: This article was produced with the assistance of OpenAI’s ChatGPT 3.5/4 and reviewed and edited by our editorial team.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
