Arkham Discovers Onchain Addresses Linked to 4 Major Bitcoin ETFs, Boosting Market Transparency

Arkham Discovers Onchain Addresses Linked to 4 Major Bitcoin ETFs, Boosting Market Transparency

Arkham, a firm specializing in onchain intelligence, has made a significant breakthrough in enhancing market transparency by identifying onchain addresses linked to four major Bitcoin exchange-traded funds (ETFs). These addresses are associated with well-known fund managers including Blackrock, Fidelity, Bitwise, and Franklin Templeton. The identification of these addresses provides valuable insights into the holdings and operations of these funds, ultimately fostering trust and attracting more informed participation in the cryptocurrency market. This development comes as transparency becomes increasingly crucial in the wake of FTX’s collapse, with crypto exchanges now disclosing proof-of-reserve data to enhance sector transparency.

4 ETFs Identified Onchain

Arkham Intelligence, a firm specializing in onchain intelligence, has made a significant announcement regarding the identification of four spot bitcoin exchange-traded funds (ETFs). These four ETFs are reportedly associated with well-known fund managers such as Blackrock, Fidelity, Bitwise, and Franklin Templeton. This latest revelation brings the total number of identified ETFs in the U.S. market to half of the total. Arkham is the first entity to publicly identify these addresses.

Arkham has now identified half of the ETFs in the U.S. market

Arkham Intelligence has been actively involved in identifying ETFs in the crypto market. In a previous effort, the firm successfully uncovered the holdings of GBTC. With this latest announcement, Arkham has now identified half of the ETFs in the U.S. market. This consistent effort by Arkham is aimed at increasing market transparency and furthering our understanding of the crypto market.

Addresses associated with Blackrock and IBIT ETF

Blackrock, one of the most prominent asset management firms, has shown significant interest in the crypto market. Arkham Intelligence has identified a list of addresses associated with Blackrock that are linked to the IBIT ETF. However, a discrepancy has been found between the identified BTC holdings and the reported BTC holdings by IBIT. The identified addresses contain fewer BTC compared to the reported figures. Further analysis revealed that IBIT’s funds are distributed over multiple addresses, each holding a maximum of 1,200 BTC.

Addresses associated with Franklin Templeton and EZBC ETF

Franklin Templeton is another well-known asset management firm involved in the ETF market. Arkham Intelligence has identified a list of addresses linked to Franklin Templeton and its EZBC ETF. Notably, the onchain holdings identified by Arkham align with the figures reported by the asset manager. This consistency helps enhance market transparency and provides investors with accurate information.

Addresses associated with Fidelity and FBTC ETF

Fidelity, a major player in the financial industry, has also entered the ETF market with its FBTC ETF. Arkham Intelligence has successfully identified the addresses associated with Fidelity and its ETF. The identified BTC holdings of 34,127 align with Fidelity’s latest update as of January 23, 2024. It is important to note that Fidelity utilizes its own custody services for managing its BTC reserves, distinguishing it from other ETFs overseen by Coinbase Custody.

Addresses associated with Bitwise and BITB/BITW ETFs

Bitwise, a cryptocurrency asset management firm, manages several ETFs, including the BITB and BITW ETFs. Arkham Intelligence has successfully identified the addresses linked to Bitwise and its ETFs. The identified wallets hold a total of 11,188 BTC. Bitwise also manages additional crypto assets for the Bitwise 10 Crypto Index Fund (BITW).

Coinbase Custody’s role in overseeing the ETF assets

Coinbase Custody, a subsidiary of Coinbase, plays a significant role in overseeing the assets of the identified ETFs. However, Fidelity differs in this aspect and utilizes its own custody services for managing its BTC reserves. Coinbase frequently emerges as the primary counterparty in transactions for the three ETFs under its custody. The availability of onchain data regarding these ETFs significantly enhances market transparency and allows investors to make more informed decisions.

Fidelity’s use of its own custody services

Fidelity’s decision to utilize its own custody services for managing its BTC reserves sets it apart from other ETFs. By relying on its own infrastructure, Fidelity maintains control over the storage and security of its assets. This approach may be driven by Fidelity’s desire to have full oversight and ensure the highest level of protection for its BTC holdings.

Enhanced market transparency and its benefits

The identification of onchain addresses linked to these four major bitcoin ETFs greatly enhances market transparency. Transparency is essential in the crypto market as it fosters trust among investors and aids in making well-informed decisions. By providing clear insights into fund operations and holdings, market transparency strengthens the overall integrity and stability of the cryptocurrency market. Furthermore, enhanced transparency attracts more informed participation and investment in the burgeoning crypto economy. This development is reminiscent of efforts made by crypto exchanges to enhance transparency in the aftermath of FTX’s collapse, with exchanges disclosing proof-of-reserve data to provide greater assurance to users.

In conclusion, Arkham Intelligence’s identification of the onchain addresses associated with these four spot bitcoin ETFs represents a significant milestone in enhancing market transparency. This development not only strengthens trust among investors but also attracts more informed participation and investment in the crypto market. The continued efforts of Arkham and other onchain intelligence providers are crucial in increasing our understanding of the crypto market and fostering its long-term growth.