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0 sats \ 1 reply \ @ek 29 Sep 2023 \ parent \ on: ETF pressure bitcoin
They'll be audited regularly to make sure they own as much bitcoin as they have IOU liabilities.
That's a good point and also a reason to believe it will be very hard to impossible to manipulate.
Are you saying the auditing itself will be rigged because of corrupt auditors?
For example. I just don't believe that audits or regulations mean that no manipulation or corruption can happen. Afaik, FTX was one of the most regulated exchanges - at least they bragged about it - but see how that turned out.
TradFi with BlackRock is a different beast but if we argue from first principles, it's still possible.
Don't trust, verify. And I am not sure they will provide proof of reserves to the masses.
That reminds me that I should look more into how proof of reserves work. Thanks! Blog post idea.
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10 sats \ 0 replies \ @SpaceHodler 29 Sep 2023
I like to think the level of auditing / regulation will be much higher with the ETF. That's why it's so hard to get approved, it requires much more scrutiny. Or maybe that's just what the SEC is using as an excuse to drag their feet.
One of the problems with exchanges using proof of reserves is it doesn't prove their liabilities. In an ETF that side of the equation should be taken care of.
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