In an unrivalled display of financial prowess, the cryptocurrency exchange known as Bitget has declared that its total proof-of-reserves ratio has skyrocketed to 223%. The reserves, currently standing at an impressive $1.44 billion, are spread across 31 different crypto assets including BTC, USDT, ETH, and USDC.
Bitget executives maintain that the company operates independently of debt, relying solely on transaction profits, investment returns, and acquisitions to amass their generous reserves. Proudly serving its users as a debt-free platform, Bitget positions itself as a secure hub for cryptocurrency transactions. However, it is notable that the exchange has no external insurance for their customers, but operates with a $300 million User Protection Fund, purported to be superior to third-party insurance.
On an intriguing note, the management at Bitget continue to prioritize strengthening partnerships with third-party auditors to scrutinize their formidable assets and reserves. Proofs-of-reserves, which are refreshed every month, have become a popular metric in exhibiting exchange assets after the collapse of FTX, a cryptocurrency exchange.
But are these practices as transparent as they appear? Jack Graves, a law professor at Syracuse University, warns that the real challenge lies in determining how much of these assets are pledged as collateral. Unless one has access to the financial services records and books of these crypto exchanges, discerning the true value of the assets could prove to be more difficult than meets the eye.
Meanwhile, across the Atlantic, Europe is on the verge of witnessing its first spot Bitcoin ETF premier after a year-long delay. Jacobi Asset Management, based in London, has finally received the green light to launch its Bitcoin exchange traded fund (ETF) on the Euronext Amsterdam exchange. Despite the initial postponement due to market upheavals following the collapses of Terra ecosystem and FTX, the Bitcoin ETF is preparing for its long-overdue debut.
The Jacobi Bitcoin ETF, a centrally cleared, crypto-backed financial instrument bodes a significant departure from customary exchange-traded notes (ETNs). Rather than owning only a debt security, as with ETNs, ETF investors will own a portion of the fund’s underlying assets, thus eliminating the potential for manipulation risks.
In simultaneous synchrony with Europe, many big financial players in the United States continue their attempts to win approval from the SEC for their spot Bitcoin ETF applications. Saliently, the year 2023 has seen nearly half a dozen institutional giants such as BlackRock and Fidelity filing fresh applications in the hopes of gaining the elusive first U.S approval. Will their endeavors bear appealing results? Time will tell.
Source: Cointelegraph
