Key Points
- Bitwise's Bitcoin ETF (BITB) is among the first spot bitcoin ETFs approved by the U.S. SEC.
- BITB's digital asset custodian is Coinbase Custody Trust LLC and it publicly discloses its Bitcoin addresses.
The Bitwise Bitcoin ETF (BITB) is a product of Bitwise Investment Advisors, a digital asset management firm. On January 11, 2024, it became one of the earliest spot Bitcoin ETFs to receive approval from the U.S. Securities and Exchange Commission.
Understanding Spot Bitcoin ETFs
A spot Bitcoin ETF allows investors to indirectly own Bitcoin while still benefiting from its price fluctuations. Investors can purchase shares of the ETF via their brokerage accounts. These shares represent a fraction of the Bitcoin owned by the fund. The ETF shares are traded on conventional stock exchanges, offering investors liquidity and easy access to Bitcoin.
About Bitwise and BITB Fees
Bitwise is a crypto asset management company that offers a variety of crypto investment funds, including index funds, liquid beta funds, and innovative strategies designed for diverse investor requirements. The firm is committed to delivering institutional-grade crypto investment products while emphasizing transparency, security, and regulatory compliance. BITB charges a sponsor fee of 0.20%, though this may vary.
Bitwise's ETF stands out from other spot Bitcoin ETFs as it was the first to publicly disclose its Bitcoin addresses. This decision was made in the interest of on-chain transparency. Bitwise's BITB is also one of the few spot Bitcoin ETFs listed on NYSE Arca, alongside Grayscale Investment's GBTC and Hashdex's DEFI funds.
Custodianship of BITB's Bitcoin
The digital asset custodian for the ETF is Coinbase Custody Trust LLC, a popular choice for spot Bitcoin ETF issuers. The trust custodian for the fund is BNY Mellon.
Bitwise made its Bitcoin addresses public on January 24, 2024.
