Bitcoin ETF race will push issuers to disclose addresses — Samson Mow

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
$44,484
 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.”
Experts like Bloomberg ETF analyst Eric Balchunas responded that holding actual Bitcoin would be in the “best interest” of ETF issuers because not doing so could mean they lose reputation and trust.
According to Valkyrie co-founder and CEO Leah Wald, investors will be able to verify whether issuers of a spot BTC ETF actually hold Bitcoin by looking at regular publicly available records from the ETF provider. “In theory, it should be no different than verifying an equity ETF holds shares of the equity names it claims to invest in via the fund holdings,” Wald told Cointelegraph, adding that many regulators will monitor the underlying asset holdings.
“For the more technical Bitcoiner, they can also look at the fund flows on and off-chain,” the Valkyrie CEO noted.