Bitwise ETF Wallet Receives Unexpected Bitcoin Donations
Date: 2024-01-27 Author: Dima Zakharov Categories: BUSINESS
Surprise Bitcoin Donations to Bitwise ETF Wallet
This week, Bitwise became the pioneer among exchange-traded Bitcoin fund (ETF) issuers by introducing a wallet for its ETF, resulting in some unexpected surprises.
Gifts in Bitcoin and Tokens
Several users sent small amounts of Bitcoin to the wallet, such as 0.00042069. Others sent BRC-20 tokens and various versions of NFTs on the Bitcoin network. In total, the wallet received over $5,000 worth of assets.
Distribution to BITB Shareholders
Bitwise's IT director, Matt Hougan, stated that "all assets will be distributed in favor of BITB shareholders."
Sanctions and Regulatory Concerns
However, this move raised concerns among some community members due to the U.S. Treasury's sanctions on specific Bitcoin addresses. Wallets receiving funds from these addresses are obligated to block the received BTC and report the transaction to the Office of Foreign Assets Control (OFAC).
Addressing the Issue
Hougan acknowledged this issue and explained that it is handled at the custodial level. Currently, Bitwise employs Coinbase as its custodian. A Coinbase representative confirmed that the exchange blocks addresses subject to OFAC sanctions and maintains communication with clients on this matter.
