Better Markets CEO Dennis M. Kelleher has encouraged the United States Securities and Exchange Commission (SEC) not to approve a spot Bitcoin exchange-traded fund (ETF). He claimed that it violates the regulating body’s key principles.
Kelleher stated in a letter to SEC Secretary Vanessa Countryman on January 5 that if the SEC approves a spot Bitcoin ETF, investors will face severe risks:
“If the SEC approves the pending rule change, it would be a grave, if not historic, mistake that almost certainly leads to a massive harm to investors. That is why we are submitting this supplemental comment letter, something Better Markets very rarely does.”
Kelleher stated that the proposed product would expose investors to the risk of potential fraud, an issue that has been linked with the crypto business since its start.
“Allowing these spot Bitcoin ETPs to be approved would not only expose investors to a market rife with manipulation and fraud,” he said.
Kelleher continued, saying that in the meantime, the crypto sector will be able to assert that the US government had officially authorized their products.
However, notable crypto pundits disregarded the letter, with Bloomberg ETF analyst James Seyffart condemning it on social media.
In a post on X (previously Twitter), Seyffart emphasized the significant work put in by asset management firms to advance their applications.
Meanwhile, in another post on X, Fox Business journalist Eleanor Terrett reaffirmed Kelleher’s recent harsh comments regarding cryptocurrency.
“It’s worse than a fantasy, it’s a fraud on the public,” she told me.
Kelleher made this remark during an interview with the Institute for New Economic Thinking in May 2023.
In more recent news, 11 of the top Bitcoin ETF candidates submitted 19b-4 amendment filings before the close of business on January 5.
These forms are one of the final stages of the SEC approval procedure, but they must be completed in order for US exchanges to begin listing shares of investment products with direct exposure to crypto. The SEC has until January 10 to approve or reject a spot Bitcoin ETF.
