- Darin Feinstein, founder of Core Scientific, has emphasised the safety of physically backed bitcoin ETFs like the Bitwise Bitcoin ETF due to their unique accounting structure.
- Feinstein raises concerns about the lack of transparency in verifying the storage, validation, auditing, and authentication processes of physical gold, suggesting uncertainty surrounding its management.
Darin Feinstein, the founder of Core Scientific, a blockchain company, asserts that physically backed Bitcoin ETFs, like the Bitwise Bitcoin ETF, offer a higher level of safety compared to other ETFs due to their unique accounting framework.
Spot bitcoin ETFs transparency vs. Gold storage uncertainty
An industry observer suggests that ordinary American traders are now equipped with a groundbreaking financial tool boasting unprecedented functionalities, all thanks to the emergence of spot bitcoin exchange-traded funds (ETFs).
Darin Feinstein, the founder behind several blockchain enterprises like Core Scientific and Blockcap, advocates for spot bitcoin exchange-traded funds (ETFs) over other commodity-based ETFs, such as gold ETFs. He argues that spot bitcoin ETFs offer superior transparency by verifying their possession of bitcoin through bitcoin networks that tracks all transactions and addresses in real time.
Feinstein asserts that there is currently no reliable method to verify the processes concerning the storage, validation, auditing, and authentication of all existing physical gold, including details about its whereabouts and management oversight.
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Feinstein commented
According to Feinstein, “A Bitcoin ETF proves via the Bitcoin network that it holds the Bitcoin – that’s a much safer investment, in my opinion, than investing in any other ETF, such as a gold ETF, where you have no way to know on a real-time basis if its really holding the gold or if it’s been authenticated.”
