So, the fiat ETF suppose to be backed by the real #bitcoin right ? If yes, then how would you know that they do hold it and just don’t give you a fake numbers like the rest of the cRaPtO exchanges
Discussion
Pubkeys and message signing? 🤔
How does it related to the ETF?!
I have almost no knowledge of etfs. But I would expect that there could be such information about the etfs custody concept
I mean you will at least see that they buy and sell btc ... they can still rug pull you
You can do proof of reserve like that anywhere. Etf, exchanges. It's just that users have to care enough so it's built. Of course theoretically in bad juristictions the can loan it out or borrow for proof of funds, but that wouldn't survive any legal scrutiny especially for things as highly regulated as ETFs.
With options trading that might get a bit different though not sure.
Someone’s tracking this.
I saw a note yesterday about Bitwise being the first to publish their holdings but I didn’t bookmark the website they were tracking this on.
Let me #asknostr if anybody who knows what I’m talking about can help point us in the right direction.
I’ve seen some twitter accounts that track the actual bitcoin addresses and tied to the ETF issuers/custodians
So even beyond the self-auditing for issuers
gov can seize it anytime backed or unbacked dnot matter - since custodian in their control must comply with law
There is no way this can be proven I think. It's a bit Trust Me Bro kinda deal.
They don't, it's all fake. But let them play their game we know how this all ends.
There is a daily checks and balances (audits) with the third party designated wallet. In most of the ETF's, that third party is Coinbase. They can however take in money today at 42K BTC and buy it 2 to 4 days later at 39K. That could obviously work against them as well. They are making money on the spreads, not the fees. That's why its a been a race to the bottom on the fee schedule, with many of them offering no fees for 6 months or longer.
The issuers have to disclose the ETF holdings and are regularly audited to ensure accuracy. If they lie, they face investor lawsuits, SEC penalties, and can even be shut down if it’s severe enough. Not to mention the big firm issuers would suffer pretty massive harm to reputation.
I know we shit on the SEC a lot but the ETF issuers have to follow much stricter regulations than crypto exchanges and the SEC actually has purview over them, whereas crypto exchanges fall into a gray area of the law.
I don't know. They should do a better job and use some kind of multi-institutional custody.
They would pay a heavy fine for bullshitting reserves. Look, those ETFs are just charging people to hodl bitcoin for them--they're only after the fiat