In a stern warning to the US Securities and Change Fee (SEC), Dennis M. Kelleher, Co-Founder and CEO of Higher Markets, a non-profit group that focuses on advancing public monetary curiosity, has issued an announcement vehemently opposing the approval of Bitcoin spot ETFs.
This growth comes amidst widespread optimism amongst market analysts that the SEC will, within the subsequent few days, greenlight a number of purposes by 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 submitted a Supplemental Remark Letter to the SEC in response to proposed rule adjustments by nationwide securities exchanges seeking to listing and commerce shares in Bitcoin spot ETFs.
On this letter, the corporate’s CEO, Dennis M. Kelleher, expressed robust opposition to the concept of Bitcoin spot exchange-traded merchandise terming it a “historic mistake” that may “nearly definitely” end in investor hurt on a big scale.
Keheller said that introducing these spot ETFs to the US monetary markets would expose thousands and thousands of American traders to sure dangers related to the crypto market, which notably features a prevalent stage of fraud and market manipulation.
Right now we filed a supplemental remark letter detailing why @SECGov ought to reject the pending request for a #Bitcoin ETP. It had the wrong 12 months 2023, which has now been modified to 2024 & you may learn it right here: https://t.co/5eLMT6Sfen pic.twitter.com/7cFzR8XQXV
— Higher Markets (@BetterMarkets) January 6, 2024
Moreover, the Higher Markets CEO believes that the SEC greenlighting this funding fund will permit varied crypto firms to misrepresent their merchandise as endorsed by the US authorities, doubtlessly deceptive retail traders.
In keeping with Keheller, denying the proposed rule adjustments just isn’t solely a prudent transfer however a authorized obligation demanded of the SEC. The co-founder of Higher Markets additionally expressed his lack of religion within the surveillance-sharing agreements (SSA) that accompany many of those proposed Bitcoin spot ETFs, describing it as a mere “window-dressing.”
In conclusion, Keheller urges the SEC to not permit American traders to put money into Bitcoin both straight or via an exchange-traded product, claiming that each strategies supply the identical dangers.
The Higher Markets Boss stated:
The truth that the funding car shall be an ETP won’t shield traders; if something, the supposed protections associated to the ETP will even present false consolation to unsuspecting traders who fall for entrepreneurs’ claims that the SEC has authorised if not endorsed the product. The worth of their funding shall be topic to the identical dangers of fraud and manipulation within the bitcoin market as traders who maintain bitcoin straight. The SEC should not topic traders to those dangers
Bloomberg Analyst Counters Higher Markets On Bitcoin Spot ETF Approval
Following the general public launch of Higher Markets Supplemental Remark Letter to the SEC, Bloomberg ETF analyst James Seyffart has sarcastically disagreed with Kelleher on the alleged dangers introduced by Bitcoin spot ETFs.
Could be a fully prison transfer for this to occur contemplating the time effort and vitality from all these issuers AND from the SEC workers over the previous couple of months https://t.co/QZR4pqcyga
— James Seyffart (@JSeyff) January 5, 2024
Seyraff referenced the a number of dialogues between asset managers and the SEC in the previous couple of weeks. Notably, these discussions have led to amendments by candidates of their varied proposals indicating adjustments that match the SEC’s necessities of investor security in regard to such exchange-traded merchandise.
The choice deadline for these ETF purposes is on January 10. Many crypto analysts stay optimistic on a possible approval which they predict will result in an elevated demand for Bitcoin.
On the time of writing, the maiden cryptocurrency trades at $43,895, with a 0.21% decline within the final 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
