Arkham Unveils On-Chain Trail: Locating Spot Bitcoin ETF

Arkham Intelligence, a blockchain research platform, has successfully identified the on-chain addresses supporting various spot Bitcoin (BTC) exchange-traded funds (ETF) in the United States, with Bitcoin prices currently at $38,934.

On Jan 22, Arkham utilized X (previously known as Twitter) to declare its successful identification of the on-chain whereabouts of four Bitcoin ETFs, including those from BlackRock, Bitwise, Fidelity, and Franklin Templeton. With Arkham’s provided data, individuals can verify the transaction hashes associated with the four specific Bitcoin ETFs directly on the blockchain.

However, Based on the available data, the iShares Bitcoin Trust (IBIT) from BlackRock presently possesses 33,430 BTC, with an approximate value of $1.3 billion. This information aligns with BlackRock’s official website’s publicly disclosed IBIT holdings.

Several months following Arkham’s identification of the Grayscale Bitcoin Trust (GBTC) addresses in September 2023, the trust underwent a significant transformation into a spot Bitcoin ETF. This transformation followed the historic approval of the U.S. Securities and Exchange Commission on Jan 10, 2024.

Uncovering Active Spot Bitcoin ETF

Currently, GBTC stands as the largest spot Bitcoin ETF among the approved funds, boasting a holding of 558,280 BTC, equivalent to almost $29 billion.

If this is accurate, Arkham has not yet located the addresses of five further spot Bitcoin exchange-traded funds (ETFs) presently active in the U.S. These include ARK Invest and 21Shares funds, Invesco and Galaxy, VanEck, Valkyrie, and WisdomTree.

Cryptocurrency enthusiasts are urging spot Bitcoin ETF issuers to publicly disclose the Bitcoin addresses supporting their products, aiming to enhance the security of the underlying BTC. Some industry observers predict that, in the future, spot Bitcoin ETF issuers may need to reveal these addresses as a strategic move to bolster competitiveness.

However, certain executives have cautioned regarding the security implications of revealing on-chain addresses for spot Bitcoin ETFs. In Nov 2022, Grayscale opted not to disclose on-chain wallet details, citing concerns related to security.

The author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.