The SEC on Wednesday rejected Grayscale’s application for a spot bitcoin ETF, citing a failure by the investment manager to answer questions about concerns around market manipulation.Nurphoto | Nurphoto | Getty ImagesGrayscale, the asset manager running the world’s largest bitcoin fund, said in a statement that it won’t share its proof of reserves with customers.”Due to security concerns, we do not make such on-chain wallet information and confirmation data publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure,” said a statement Friday.Following the implosion of FTX and its subsequent bankruptcy proceedings exposing that customer funds were missing, multiple crypto exchanges have jumped to release proof-of-reserve audits in order to assuage investor concerns over the safety of their funds. Others, like Binance, say they soon plan to do so.Grayscale wrote in a tweet that it realized that failing to disclose a proof of reserves would be a “disappointment to some,” but added that a “panic sparked by others is not a good enough reason to circumvent complex security arrangements” that have kept its investors’ assets “safe for years.”Grayscale’s flagship fund is the Grayscale Bitcoi …
