Bitwise Ethereum ETF Pushes to Transparency, Publishes On-Chain Addresses

• Bitwise Ethereum ETF publishes Ethereum addresses and ENS subnames.
• Enhances transparency, allowing on-chain verification.
• Future addresses will be added as the fund grows.

Several high-profile incidents, including the collapse of FTX , pushed the crypto industry to understand the importance of transparency. This is especially true for centralized entities whose transactions are not available on the chain by default.

Recently, Bitwise Asset Management has announced a significant step in this direction. Their Ethereum ETF (ETHW) has become the first U.S. exchange-traded product to publish its Ethereum addresses.

Bitwise Ethereum ETF Leads in Transparency

Major crypto industry players are making significant steps towards transparency. On Thursday, July 23,, Bitwise Asset Management announced that its Ethereum ETF (ETHW) has become the first U.S. exchange-traded product to publish its Ethereum addresses. 

The ETF’s Ethereum holdings are now verifiable on the blockchain, each associated with an Ethereum Name Service (ENS) subname for easier identification. Anyone can verify ETHW’s holdings and flows directly on the blockchain. Additionally, the information enables developers and analysts to build public dashboards or write smart contracts that utilize these ENS records. 

These steps are critical to broadening the appeal of ETFs to investors. Transparency is crucial for maintaining investor confidence, especially after events like the FTX collapse tarnished crypto’s reputation. 

How ETFs Impact Ethereum’s Price

The approval of Ethereum ETFs marks a pivotal moment for the Ethereum market and the broader cryptocurrency ecosystem. By providing a regulated and accessible investment vehicle, Ethereum ETFs are likely to attract substantial institutional capital. 

Earlier, Bitwise CIO Matt Hougan stated that he expects significant interest in Ethereum ETFs, predicting $15B in inflows in the first months of launch. In a separate interview, Hougan claimed these inflows would significantly impact Ether’s price. The institutional inflow can potentially send it above $5,000 by the end of the year. 

Institutional involvement also brings greater market stability and legitimacy, potentially reducing the long-term volatility of crypto assets. 

On the Flipside

• Not everyone has the same opinion about ETF’s effect on Ether. For instance, Andrew Kang from Mechanism Capital stated that Ethereum may not attract as much interest as Bitcoin . 
• In its statement, Bitwise highlights that its investment product is volatile and may not be suitable for all investors. 

Why This Matters

Bitwise’s initiative is a significant step toward increasing transparency in the cryptocurrency sector, potentially enhancing investor confidence. 

Read more about the potential impact of ETFs on Ethereum: 
ETFs Will Send Ether to All-Time Highs Above $5,000: Bitwise CIO

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