US Bitcoin ETF Approval Sparks Controversy Among Critics and Crypto Community Alike
Summary:
The approval of spot Bitcoin ETFs in the US has sparked controversy, with SEC Commissioner Caroline Crenshaw and non-profit financial watchdog Better Markets expressing concerns about potential market manipulation and harm to investors. Critics have labelled Bitcoin as worthless and purposeless, suggesting the ETFs provide more ways for speculators to gamble. Even within the cryptocurrency community, some argue the approvals contradict the decentralized ethos of Bitcoin. Despite this, others in the sector continue to support Bitcoin's integration into the financial system.
The approval of the spot Bitcoin (BTC) Exchange-Traded Funds (ETFs) in the United States, while hailed by the wider cryptocurrency sector, has sparked dissension among some parties. On January 10, SEC Commissioner Caroline Crenshaw, one of two opposing votes, expressed her dissatisfaction, characterizing the SEC's endorsement of Bitcoin-oriented financial instruments as "faulty and unprecedented." Crenshaw articulated her fear that these products might inundate the market, impacting US households' retirement funds, especially those least capable of absorbing losses caused by fraudulent and manipulative conduct rampant in spot Bitcoin markets.
In addition, Better Markets, a nonprofit financial watchdog, expressed strong criticism of the ETF approval. The organization argued that the SEC's approval did not alter the intrinsic worthlessness and functionless nature of Bitcoin and cryptocurrencies. Instead, these remain the go-to product for speculators, gamblers, and criminals, perpetuating fraud, manipulation, and illegal activities.
Before the approval, Better Markets' CEO, Dennis Kelleher, wrote a letter to the SEC asking the agency to dismiss the Bitcoin ETF applications, stating that these products would likely result in significant harm to investors. Stephen Diehl, known for criticizing cryptocurrencies, expressed that Bitcoin promoted stagnancy and drove the subjugation of discredited ideas from the medieval age. He also extolled traditional fiduciary money such as USD. Known Bitcoin critic Peter Schiff also chastised the ETF approvals, saying they only provide extra avenues for Bitcoin speculators to gamble.
Some in the crypto community also expressed their dismay, asserting that the approvals contradicted Bitcoin's underlying philosophy. In particular, crypto investigator and decentralization proponent, Chris Blec, opined that institution-led ETFs would eventually harm Bitcoin's decentralized nature.
Still, many others within the crypto sector continue to rally in favour of Bitcoin's financial integration, in hopes of a resurgence of what was known as the 'DeFi summer', initially spurred on by MakerDAO's financial strategies.
Published At
1/11/2024 9:07:12 AM
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