Not everyone is equally enthusiastic about the possibility of a Bitcoin ETF. There are even non-profit lobby groups that actively oppose this financial product. Better Markets is one such organization. They sent a letter to the SEC refraining from approving a Bitcoin ETF.
Better Markets’ mission is to advocate for strict financial regulation and highlights the risks associated with a Bitcoin ETF.
Letter to the SEC
Dennis M. Kelleher, CEO and co-founder of Better Markets, expressed concerns in the letter about the approval of a spot Bitcoin ETF. He highlighted the potential risks this poses to American investors and retirees.
Kelleher’s argument revolves around the speculative and volatile nature of Bitcoin, which he considers “socially useless” for the financial market.
One of Kelleher’s main arguments is the immaturity of the Bitcoin market, which he believes is not yet ready for an ETF. He points to things like wash trading and the concentration of Bitcoin ownership among a limited number of owners.
Moreover, Kelleher states that Bitcoin’s volatility is an exclusion criterion for offering it to investors. It raises concerns that allowing spot Bitcoin ETFs could lead to a regulatory error with lasting consequences.
Bitcoin ETF is a historical mistake
Kelleher writes:
“Approving spot Bitcoin ETFs would be a historic mistake that would almost certainly cause enormous harm to investors. The immense and ruthless fraud and manipulation in the Bitcoin market means that approving these products would expose millions of American investors and retirees to the harms the SEC is trying to prevent.”
Moreover, he does not want a possible approval to be a sign that the crypto market operates under full government approval:
“This would also undoubtedly lead to the crypto industry claiming or insinuating that their products have already been approved by the US government.” The crypto industry will almost certainly inundate Americans with marketing propaganda suggesting that the SEC’s actions impact the legitimization of crypto and provide false comfort to retail investors. The SEC should not encourage the financial carnage that will occur if the crypto industry is repackaged, added a veneer of legitimacy, and widely distributed a financial product that is little more than a socially worthless gaming chip.”
What speaks for better markets? In a document filed with the CFTC, the organization once rejected a $1 million donation from FTX because it was in direct consideration for support. This incident shows that Better Markets remains steadfast in any case.
Source: BTC Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
