In a stern warning to the U.S. Securities and Trade Fee (SEC), Dennis M. Kelleher, co-founder and CEO of Higher Markets, a nonprofit group targeted on advancing public monetary pursuits, issued an announcement strongly opposing in opposition to the adoption of Bitcoin spot ETFs.
This growth comes amid widespread optimism amongst market analysts that the SEC will greenlight a number of functions within the coming days from asset managers vying to launch a Bitcoin spot ETF in america.
Approving Bitcoin Spot ETF Would Be a ‘Historic Mistake’ – Kelleher
On Friday, December 6, Higher Markets filed a supplemental remark letter with the SEC in response to proposed rule adjustments by nationwide securities exchanges in search of to checklist and commerce shares of Bitcoin spot ETFs.
On this letter, the corporate’s CEO Dennis M. Kelleher expressed robust opposition to the concept of spot-traded Bitcoin merchandise, calling it a “historic mistake” that may “nearly definitely” lead to investor hurt on a big scale.
Keheller acknowledged that the introduction of those spot ETFs into the US monetary markets would expose thousands and thousands of US traders to sure dangers related to the crypto market, together with specifically a widespread degree of fraud and market manipulation.
At present we submitted a further remark letter explaining why @SECGov should deny the pending request for a #Bitcoin ETP. The unsuitable yr 2023 was on it, which has now been modified to 2024 and you may learn that right here: https://t.co/5eLMT6Sfen pic.twitter.com/7cFzR8XQXV
— Higher Markets (@BetterMarkets) January 6, 2024
Moreover, the CEO of Higher Markets believes that the SEC greenlighting this funding fund will permit a number of crypto corporations to misrepresent their merchandise as authorized by the US authorities, doubtlessly deceptive retail traders.
In line with Keheller, denying the proposed rule adjustments isn’t solely a clever transfer, but in addition a authorized obligation required of the SEC. The Higher Markets co-founder additionally expressed his insecurity within the surveillance-sharing agreements (SSA) that include many of those proposed Bitcoin spot ETFs, describing it as merely “window-dressing.”
In conclusion, Keheller urges the SEC to not permit US traders to spend money on Bitcoin immediately or by means of an exchange-traded product, claiming that each strategies carry the identical dangers.
The boss of higher markets stated:
The truth that the funding automobile will likely be an ETP is not going to defend traders; If something, the supposed protections concerning the ETP can even present false consolation to unsuspecting traders who fall for entrepreneurs’ claims that the SEC has authorized and even didn’t approve the product. The worth of their funding will likely be topic to the identical dangers of fraud and manipulation within the bitcoin market as traders who maintain bitcoin immediately. The SEC mustn’t expose traders to those dangers
Bloomberg Analyst Opposes Higher Markets for Bitcoin Spot ETF Approval
Following the general public launch of the Higher Markets Supplemental Remark Letter to the SEC, Bloomberg ETF analyst James Seyffart sarcastically disagrees with Kelleher on the alleged dangers posed by Bitcoin spot ETFs.
It will be a completely felony transfer to permit this to occur, given the time and vitality exerted by all these issuers AND the SEC workers over the previous few months https://t.co/QZR4pqcyga
— James Seyffart (@JSeyff) January 5, 2024
Seyraff referred to the various dialogues between asset managers and the SEC in current weeks. Notably, these discussions have resulted in adjustments by the candidates of their numerous proposals indicating adjustments per the SEC’s investor security necessities with respect to such exchange-traded merchandise.
The choice deadline for these ETF functions is January 10. Many crypto analysts stay bullish on a doable approval that they predict will result in elevated demand for Bitcoin.
On the time of writing, the primary cryptocurrency is buying and selling at $43,895, down 0.21% up to now hour.
Bitcoin buying and selling at $43,819 on the day by day chart | Supply: BTCUSDT chart on Tradingview.com
Featured picture from Getty Picture/istockphoto, chart from Tradingview