In a stern warning to the US Securities and Alternate 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 a press release vehemently opposing the approval of Bitcoin spot ETFs.
This improvement 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 the US.
Approving Bitcoin Spot ETF Would Be A ‘Historic Mistake’ – Kelleher
On Friday, December 6, Higher Markets submitted a Supplemental Comment Letter to the SEC in response to proposed rule modifications by nationwide securities exchanges seeking to record and commerce shares in Bitcoin spot ETFs.
On this letter, the corporate’s CEO, Dennis M. Kelleher, expressed sturdy opposition to the thought of Bitcoin spot exchange-traded merchandise terming it a “historic mistake” that can “almost certainly” lead to investor hurt on a big scale.
Keheller said that introducing these spot ETFs to the US monetary markets would expose tens of millions of American traders to sure dangers related to the crypto market, which notably features a prevalent degree of fraud and market manipulation.
At this time we filed a supplemental remark letter detailing why @SECGov ought to reject the pending request for a #Bitcoin ETP. It had the inaccurate 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 enable numerous crypto firms to misrepresent their merchandise as endorsed by the US authorities, doubtlessly deceptive retail traders.
In accordance with Keheller, denying the proposed rule modifications will not be 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 enable American traders to put money into Bitcoin both instantly or by way of an exchange-traded product, claiming that each strategies provide the identical dangers.
The Higher Markets Boss stated:
The truth that the funding car can be an ETP won’t defend traders; if something, the supposed protections associated to the ETP may also present false consolation to unsuspecting traders who fall for entrepreneurs’ claims that the SEC has accredited if not endorsed the product. The worth of their funding can be topic to the identical dangers of fraud and manipulation within the bitcoin market as traders who maintain bitcoin instantly. 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 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
Seyraff referenced the multiple dialogues between asset managers and the SEC in the previous few weeks. Notably, these discussions have led to amendments by applicants of their numerous proposals indicating modifications 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 constructive 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 every day chart | Supply: BTCUSDT chart on Tradingview.com
Featured picture from Getty Picture/istockphoto, chart from Tradingview
