Better Markets CEO Urges SEC to Reject Spot Bitcoin ETF, Citing Investor Risk
Summary:
Better Markets CEO, Dennis Kelleher has called on the U.S. SEC to reject the spot Bitcoin ETF, claiming it contradicts the SEC's principles and will expose investors to significant risk associated with fraud. On the other hand, prominent crypto commentators like James Seyffart, a Bloomberg ETF analyst, criticize Kelleher's concerns, highlighting the substantial effort invested by asset management firms in advancing their applications.
Dennis M. Kelleher, the head of the nonprofit group Better Markets, has called on the U.S. Securities and Exchange Commission (SEC) to reject the proposition of a spot Bitcoin exchange-traded fund (ETF). Kelleher believes that such a move would contradict the fundamental values of the commission. In a letter to SEC Secretary Vanessa Countryman dated January 5, Kelleher expressed his concerns, stating that the approval of a spot Bitcoin ETF would expose investors to extensive risks. His letter to Secretary Countryman signals a potential historic blunder that might lead to significant harm to investors.
According to Kelleher, the suggested product could expose investors to risks associated with potential fraud, which is a common association with the crypto industry since its birth. His letter highlights the risk of investors dealing with a market riddled with manipulation and fraud. Additionally, he pointed out how such approval may empower the crypto industry, giving them the ability to assert their products are now authorized by the U.S. government.
As reported by Cointelegraph on January 1, more than 324,000 crypto users became victims of phishing scams in 2023, losing nearly $295 million in digital wealth to fraudulent acts. Despite these concerns highlighted in Kelleher's letter, key figures in the crypto industry refuted his claims. James Seyffart, a Bloomberg ETF analyst, criticized Kelleher's concerns on a social media post on X (formerly Twitter), highlighting the considerable work by asset management companies to progress their applications.
Cointelegraph reported on January 5 about the submission of 19b-4 amendment forms by 11 Bitcoin ETF applicants. These documents represent one of the final hurdles in the SEC approval journey. However, they need to complete the S-1 documents to permit U.S. exchanges to start listing investment securities with direct crypto exposure.
Published At
1/6/2024 5:23:00 AM
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