On-chain analytics firm Arkham Intelligence has identified four Bitcoin (BTC) exchange-traded product (ETP) addresses. The discovery brings the number of exchange-traded fund (ETF) providers with known BTC addresses to five.
Arkham Intelligence has identified addresses for products provided by Blackrock, Bitwise, Fidelity, and Franklin Templeton.
BTC ETF providers fear public exposure
Data shows that Fidelity holds $1.21 billion in BTC in the Fidelity Wise Origin Bitcoin Fund with custodian Fidelity Digital Asset Services LLC. Blackrock, Bitwise, and Franklin Templeton hold $1.16 billion, $422.68 million, and $47.09 million worth of BTC on the Coinbase Prime custody platform.
Coinbase is the custodian for eight of the 11 Bitcoin ETFs, which some say poses a concentration risk . The custodian holds the private key to transfer BTC to the address owner . Gemini, a cryptocurrency exchange founded by Cameron and Tyler Winklevoss, is the custodian of the Van Eck Bitcoin Trust.
Read more: What is a Bitcoin ETF ?
Last February, the US Securities and Exchange Commission proposed new rules for cryptocurrency custodians. The rule is expected to go into effect later this year .
The concentration of billions of dollars worth of cryptocurrency can create a single point of failure . Cybersecurity breaches or legal risks could put customer funds at risk . A hack of the Coinbase database could reveal transfer details that the institution does not want to make public.
CoinMetrics, an analytics firm co-founded by cryptocurrency venture capitalist Nick Carter, said it was important for new research methods to emerge as Bitcoin evolves. The company said in a recent blog post about on-chain analytics:
“As Bitcoin continues to evolve and mature, the need to critically study Bitcoin grows accordingly.”
Read more: How to Evaluate Cryptocurrencies with On-Chain and Fundamental Analysis
Coinbase recently revealed that it has received more than 12,000 law enforcement calls related to crime issues in 2023. The exchange is currently engaged in a protracted legal battle over the securities status of several cryptocurrency assets.
Impact of US Bitcoin ETF felt in Europe
The launch of the US Bitcoin ETF earlier this month resulted in losses of approximately 5,000 BTC in European and Canadian funds. In the aftermath, European exchange-traded product (ETP) providers Invesco and Wisdomtree cut fees by up to 60% . Wisdomtree's physical Bitcoin ETP fee was lowered from 0.95% to 0.35%, and Invesco lowered the fee for its physical Bitcoin ETP from 0.99% to 0.39% of managed assets.
The European and Canadian Bitcoin ETFs were one of the only regulated Bitcoin products for institutions before the U.S. product was launched. ARK Invest's US Bitcoin ETF partner, 21Shares, is a prominent ETF provider in Europe.
The above article is a BeInCrypto article written in English translated into Korean using AI.
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