Bitwise becomes 1st US ETF to post Ethereum addresses

Bitwise has disclosed several ENS addresses used to store Ethereum tokens for its spot ETH ETF, which launched on Tuesday.

Bitwise has become the first U.S. spot Ethereum (ETH) ETF issuer to release wallets after committing to transparency for its ETHW fund. The asset manager made a similar move in January when it revealed public Bitcoin (BTC) addresses for the assets backing its BITB spot BTC ETF.

Five addresses were assigned Ethereum Name Service (ENS) tags shortly before ETHW and eight other funds began trading. ENS subtitles simplify Ethereum addresses, which are typically long and difficult to read. Instead of an alphanumeric string, the ENS protocol assigns a shorter tag to an address, such as “abc.eth.”

Bitwise has promised to add more addresses as the fund grows so that users and investors can track their Ether-related activities on-chain.

“This is the kind of transparency that only crypto makes possible. It allows anyone to verify ETHW’s assets and flows directly on the blockchain, and allows people to easily create public dashboards or write smart contracts that use existing ENS records,” an excerpt from the announcement read.

The update was met with applause from the ENS protocol. “ETHW is now the most crypto-native ETF,” ENS said in a tweet on X.

We are excited to collaborate with you @BitwiseInvest They are using the subname ethw.bitwise.eth to increase transparency for their new Ethereum ETF!

Bitwise assigns alt names to all addresses that hold the on-chain assets backing its ETFs.

ETHW is now the most crypto-native ETF 🫡 https://t.co/lsPYAjRQk3

— ens.eth (@ensdomains) July 23, 2024

Bitwise outpaces rivals by $361 million in trading volume in 90 minutes

Nine spot Ethereum ETFs from eight issuers saw over $361 million in trading volume in the first hour and a half after launch. Ether funds accounted for over 55% of Bitcoin ETF volume during the same opening hour.

Matthew Sigel, head of digital asset research at VanEck, noted that Grayscale’s Ethereum Trust (ETHE) accounted for an estimated 24% of Tuesday’s spot ETH ETF activity so far. While most of the trading appears to be driven by Grayscale sales, ETF data is typically collected the following day, meaning a clearer picture should emerge by Wednesday.

Meanwhile, Ethereum’s market price remained unaffected by the news and Wall Street trading, with many speculating how Ether would react, whether with a price increase or a price decrease.

“It’s hard to predict whether ETH will skyrocket. The truth is, no one knows, so we can only look at trends and previous price action,” Rick Bagshaw, CMO of P2P, told crypto.news via email.