Summary
Bitwise, the first spot bitcoin exchange-traded fund issuer to publish its wallet, has received unexpected gifts such as small amounts of bitcoin, BRC-20 tokens, Bitcoin domain names, and Bitcoin NFTs. The wallet has received over $5,000 in total. Bitwise’s CIO stated that all assets will benefit shareholders. There is a concern about OFAC-sanctioned addresses, but Bitwise’s custodian, Coinbase, blocks these addresses and ensures compliance with reporting requirements.
Key Points
1. Bitwise’s spot bitcoin exchange-traded fund (ETF) recently published the wallet for its fund, which quickly started receiving unexpected gifts such as small amounts of bitcoin, BRC-20 tokens, Bitcoin domain names, and Bitcoin NFTs. The wallet has received over $5,000 in total.
2. In the event that Bitwise involuntarily receives assets, the fund’s S-1 filing states that it may sell them for cash and distribute the cash proportionally to shareholders. Earlier versions of the filing mentioned the possibility of distributing assets in-kind, but this language was removed before approval.
3. Concerns were raised regarding OFAC-sanctioned addresses and the requirement to block and report any funds received from those addresses. Bitwise addresses this issue at the custodian level by using Coinbase as its custody provider, as Coinbase blocks OFAC-sanctioned addresses and works with clients to ensure compliance with reporting requirements.