Dennis M. Kelleher, Co-Founder and CEO of Better Markets, a non-profit organization dedicated to promoting public financial interest, has issued a strong warning to the US Securities and Exchange Commission (SEC) against the approval of Bitcoin spot ETFs. This comes at a time when market analysts are hopeful that the SEC will approve several applications for the launch of a Bitcoin spot ETF in the United States.
In a Supplemental Comment Letter submitted to the SEC on Friday, December 6, Kelleher voiced his strong opposition to Bitcoin spot exchange-traded products, calling it a “historic mistake” that could result in large-scale investor harm. He argued that introducing these spot ETFs to the US financial markets would expose millions of American investors to the risks associated with the crypto market, including a high level of fraud and market manipulation.
Kelleher also expressed concern that the SEC’s approval of this investment fund would allow crypto companies to misrepresent their products as endorsed by the US government, potentially misleading retail investors. He believes that denying the proposed rule changes is not only a prudent move but a legal obligation of the SEC. Kelleher also expressed skepticism about the surveillance-sharing agreements (SSA) that accompany many of these proposed Bitcoin spot ETFs, describing them as mere “window-dressing.”
In his conclusion, Kelleher urged the SEC not to allow American investors to invest in Bitcoin either directly or through an exchange-traded product, arguing that both methods pose the same risks. He stated, “The fact that the investment vehicle will be an ETP will not protect investors; if anything, the supposed protections related to the ETP will also provide false comfort to unsuspecting investors who fall for marketers’ claims that the SEC has approved if not endorsed the product.”
However, Bloomberg ETF analyst James Seyffart has disagreed with Kelleher’s views on the risks posed by Bitcoin spot ETFs. Seyffart pointed to the recent dialogues between asset managers and the SEC, which have led to amendments in their proposals to meet the SEC’s requirements for investor safety. The decision deadline for these ETF applications is on January 10, and many crypto analysts remain optimistic about a potential approval, which they predict will increase demand for Bitcoin.
At the time of writing, Bitcoin is trading at $43,895, with a 0.21% decline in the last hour.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | James Seyffart, Dennis M. Kelleher |
| Companies | US Securities and Exchange Commission, Better Markets |
| Currencies | united states dollar, Bitcoin |
| Securities | None |
