The Risks of a Bitcoin ETF, According to Better Markets
The non-partisan nonprofit organization Better Markets is urging the Securities and Exchange Commission (SEC) to deny pending applications for a Bitcoin-trading exchange-traded fund (ETF). CEO Dennis M. Kelleher argues that approving a spot Bitcoin ETF would be a “grave threat” to investors, introducing a volatile and socially useless financial product. Kelleher believes that such approval would set a dangerous precedent, making it harder for the SEC to win future legal battles.
Kelleher’s Arguments Against a Bitcoin ETF
In his letter to the SEC, Kelleher raises several concerns about the approval of a spot Bitcoin ETF. He questions whether the Bitcoin market is mature enough, citing potential fraud and manipulation due to wash trading and high concentration among a few owners. Additionally, Kelleher argues that Bitcoin’s volatility disqualifies it as an investment product.
About Better Markets
Better Markets is a non-partisan lobbying organization that advocates for increased financial regulation on Wall Street. It has been critical of the crypto industry and has made similar pleas to lawmakers and regulators in the past. The organization has received endorsements from prominent figures such as President Barack Obama, Senator Elizabeth Warren, and SEC Chair Gary Gensler.
Hot Take: Better Markets Raises Concerns About Bitcoin ETF Approval
The nonprofit organization Better Markets is raising serious concerns about the approval of a spot Bitcoin exchange-traded fund (ETF) by the SEC. CEO Dennis M. Kelleher argues that such approval would pose significant risks to investors and set a dangerous precedent. He believes that the Bitcoin market is not mature enough and could be prone to fraud and manipulation. Additionally, Kelleher points out the volatility of Bitcoin as a reason to disqualify it as an investment product. Better Markets, known for its advocacy for stricter financial regulations, has been relentless in its criticism of the crypto industry.
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