Bitwise took to X to share the news that it is transitioning its Bitcoin address from P2PKH to native SegWit P2WPKH. The aim is to adopt new technology and offer an enhanced experience to investors and the entire crypto sphere. The most has been defined as power play, for it reduces the cost and improves the efficiency of transactions. Most importantly, it signifies Bitwise’s commitment to innovation and leaving behind the players in traditional finance.
Bitwise has expressed its pride and gratitude to Coinbase Custody, adding that their team promptly addressed the request.
For a quick reference, the native SegWit brings features of better speed, economical cost, and higher efficiency than the traditional mechanism. It, therefore, marks a futuristic pathway for all transactions pertaining to Bitcoin. True, considering many players would look to get into the market, and only the ones with higher efficiency and lower costs would make it to the top. Bitwise is confident about putting Bitcoin on the fast track and is also bidding to attract more investors.
SegWit is precisely what is expected to draw a line between the crypto market and traditional finance players. The latter are known to be driven by bureaucracy and traditions. Hence, they restrict how they operate and upgrade as time goes on. On the other hand, the crypto market keeps itself open to innovations in the dynamic world of finance.
It helps investors since they can continue to verify their Bitwise Bitcoin ETF holdings transparently on-chain. Bitwise plans to divide its holdings across 13 such addresses, with more to be added as it sees a rise in AUM.
The community has expressed optimism about the development. Most of them have called it a great step, adding that it is a good idea to take things forward by upgrading Bitcoin technology. Others have been more open about it, stating that it sets a new bar for Wall Street, showcasing them how to treat Bitcoin.
Moving forward, the speculation is that SegWit will eventually become the norm as more institutional investors enter the market. It will continue to benefit both investors and the crypto ecosystem. Thereby paving the way for its mainstream acceptance and wider adoption.
The development comes almost 12 hours (at the time of writing this article) after Bitwise reported surpassing the milestone of $1 billion in AUM with BITB. Also, Bitwise has bagged multiple nominations at the etf.com Awards. It has been named in three categories – Lifetime Achievement (CEO of Bitwise, Hunter Horsley), Index Provider of the Year (Bitwise), and ETF of the Year (BITQ).
Notably, the upgrade to a new address happens when Bitcoin prices skyrocket. Earlier at $40,000, the token surged to $52,288.19, a jump of 1.565 in the last 24 hours. It further reflects a rise of 17% in the last 7 days. The market cap of Bitcoin is also up, as is its 24-hour volume.
