Bitwise’s View on Donations Received by the Fund’s Portfolio:
- Bitwise recently disclosed the portfolio of its fund, unexpectedly receiving donations in Bitcoin.
- The received assets, including Bitcoin NFTs, will benefit BITB shareholders, according to Bitwise’s CIO.
- In the event of unintentional receipt of assets, Bitwise can sell them to distribute cash to shareholders.
Bitwise recently unveiled the on-chain portfolio of its Bitcoin ETF cash fund, a first in the industry.
Shortly after, the portfolio began to receive unexpected donations from crypto users. These donations included small amounts of Bitcoin, BRC-20 tokens, Bitcoin domain names, and a variety of Bitcoin NFTs.
The total assets received exceeded $6,000. Matt Hougan, Bitwise’s CIO, confirmed that all received assets would benefit the BITB fund shareholders.
Bitwise and Coinbase Collaborate to Block OFAC Sanctioned Addresses
According to the fund’s S-1 filing, if Bitwise unintentionally receives cryptocurrencies or other assets, the company may sell them. The profits from this sale are then distributed to the fund shareholders.
Now, a question arises regarding OFAC-sanctioned addresses: Bitcoin wallets simply cannot prevent the receipt of funds. Indeed, once an address is publicly revealed, anyone has the power to send digital assets to it, even from OFAC-sanctioned addresses.
However, Bitwise addresses this issue at the asset custodian level by using Coinbase as the custodian. Coinbase takes care of blocking (after receiving the funds) OFAC-sanctioned addresses and works with clients to ensure that funds are blocked and reported in compliance with the law.
