Dennis Kelleher, CEO of the nonprofit group Higher Markets, has urged the US Securities and Alternate Fee (SEC) to not approve a spot Bitcoin (BTC) exchange-traded fund (ETF), arguing that it goes in opposition to the core ideas of the regulatory physique.
In a letter addressed to SEC secretary Vanessa Countryman on Jan. 5, Kelleher emphasised that if the SEC had been to approve a spot Bitcoin ETF, it might result in buyers going through vital dangers:
“We submit this supplemental remark letter (which Higher Markets very not often does) as a result of it will be a grave if not historic mistake nearly definitely main to an enormous investor hurt if the SEC approves the pending rule change.”
Kelleher argued that the proposed product would expose buyers to the chance of potential fraud, a priority he claims is usually related to the crypto business.
“The approval of those spot Bitcoin ETPs wouldn’t solely expose buyers to a market completely contaminated with fraud and manipulation,” he said.
Cointelegraph not too long ago reported that over 324,000 crypto customers fell sufferer to phishing scams in 2023, with round $295 million in digital belongings misplaced to pockets drainers.
In the meantime, Kelleher additional defined that it will additionally allow the crypto business to assert that its merchandise at the moment are authorized by the U.S. authorities.
Associated: ARK’s Cathie Wooden sees short-term impact of spot Bitcoin ETF as ‘promote on information’
Nonetheless, outstanding crypto commentators dismissed the letter, with Bloomberg ETF analyst James Seyffart criticizing it on social media.
In a put up on X (previously Twitter), Seyffart reiterated the substantial effort invested by asset administration companies in advancing their functions.
Can be a fully legal transfer for this to occur contemplating the time effort and power from all these issuers AND from the SEC workers over the previous few months https://t.co/QZR4pqcyga
— James Seyffart (@JSeyff) January 5, 2024
In the meantime, in one other X put up, Fox Enterprise journalist Eleanor Terrett reiterated unfavorable remarks that Kelleher has made about crypto in latest occasions.
“It’s worse than a fantasy; it’s a fraud on the general public,” she recalled.
Kelleher made the remark throughout an interview with the Institute for New Financial Pondering in Could 2023.
In newer information, 11 spot Bitcoin ETF candidates submitted 19b-4 modification kinds earlier than the shut of enterprise on Jan. 5.
These kinds are one of many final levels within the SEC approval course of, however S-1 paperwork should be accomplished to ensure that U.S. exchanges to start itemizing shares of funding securities with direct publicity to crypto.
Some specialists have speculated that ultimate approval for the spot Bitcoin ETFs will drop earlier than Jan. 10 — the deadline for an providing from ARK Make investments and 21Shares.
Journal: Bitcoin ETF race has a brand new participant, Binance ends assist for BUSD, and extra: Hodler’s Digest: Nov. 26 – Dec. 2
