A situation where a spot Bitcoin ETF issuer fakes the underlying BTC volumes is hypothetically possible in case an issuer violates the rules, Samson Mow said.
Some issuers of potential spot Bitcoin (BTC) exchange-traded funds (ETF) will eventually have to disclose the on-chain addresses for the underlying BTC to compete with other issuers, according to one industry activist.
Disclosures of verifiable on-chain proofs showing Bitcoin reserves would be the best option for spot Bitcoin ETF issuers to ensure their holdings, according to Jan3 CEO Samson Mow. But none of the existing 14 applicants have been working to provide on-chain proofs, Mow said in an interview with Cointelegraph on Dec. 28.
Some cryptocurrency observers have been skeptical about the underlying holdings of a spot Bitcoin ETF, with certain executives even suggesting that a spot Bitcoin ETF could potentially create “millions of unbacked BTC.”
