• 24 June, 2024

CEO Samson Mow Advocates Radical Transparency for Success in US Spot Bitcoin ETF Race

In a recent interview, Samson Mow, the CEO of the Bitcoin technology company, Jan3, asserted that simply holding Bitcoin isn’t enough to ensure the legitimacy and security of any spot Bitcoin ETF. He stated that  issuers must demonstrate their holdings publicly by revealing the on-chain addresses where their Bitcoins reside, claiming it as the “best option” to win investor trust and stand out from the pack. 

Samson Mow has indicated his opinion on the US spot Bitcoin ETF market stating that issuers are to embrace radical transparency by publicly disclosing their underlying Bitcoin holdings through verifiable on-chain proofs.

Some remain wary of potential “unbacked” ETFs, fearing inflated Bitcoin claims without verifiable proof. Mow acknowledged the regulatory framework can’t guarantee perfect compliance, but he believes transparency will be a competitive weapon in the upcoming ETF race. He predicted that the first issuer to reveal their on-chain addresses will likely gain a significant edge in terms of trust and reputation. He stated, 

Technically, it should not be possible for an ETF to issue unbacked shares as they are tightly regulated, but regulation doesn’t necessarily mean that issuers play by the rules.”

Not everyone shares Mow’s enthusiasm for on-chain disclosure. Issuers like Grayscale have previously cited security concerns as reasons for keeping their Bitcoin holdings shrouded in secrecy. With the SEC expected to approve the first spot Bitcoin ETFs as early as January 10, the competition is about to heat up.

Grayscale Bitcoin Trust, according to reports, filed its third amended S-3 filing with the Securities and Exchange Commission (SEC) today. This updated application attempts to transform the trust into a spot Bitcoin ETF, which is cleverly timed as the window for probable approval of such ETFs looms between January 5-10, 2024.

The cryptocurrency market experienced a significant downturn following a prediction made by Matriport regarding the SEC’s stance on Spot Bitcoin ETFs. The tweet shared by popular cryptocurrency analyst Lark Davis on X showcased that Matriport suggested that the SEC is likely to reject all Spot Bitcoin ETFs.

The report also shed light on severe headwinds that the market faced in the recent hours. Bitcoin ($BTC) witnessed a 5.5% drop. While Ethereum ($ETH) experienced a 6% decline, Solana ($SOL) recorded an 8% decrease.

In addition, Avalanche ($AVAX) suffered a 10% downturn. Reportedly, Chainlink ($LINK) also tumbled by 11% and Elrond ($EGLD) faced the most substantial loss, down by 14%.

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