The CEO of the non-profit organization Better Markets, Dennis M. Kelleher, urged the U.S. Securities and Exchange Commission (SEC) to reject applications for spot Bitcoin exchange-traded funds (ETFs), arguing that approval would be contrary to the fundamental institutional principles of the American regulator.
“Approval of Spot ETFs Will Lead to Significant Losses for Investors”
In a letter sent to SEC secretary Vanessa Countryman on January 5, Kelleher stated that if the SEC approved a spot Bitcoin ETF, investors could face significant risks, adding, “We submit this additional comment letter (as Better Markets rarely does) because the SEC’s approval of the pending ETFs, while not a historic mistake, will lead to significant losses for investors.”
The CEO of Better Markets emphasized that approval of a spot Bitcoin ETF would expose investors to the risk of fraud, which has been a significant concern for the cryptocurrency industry from the beginning, stating, “The approval of these spot Bitcoin ETFs will not only expose investors to a market tainted with fraud and manipulation.”
Kelleher’s letter to the SEC drew reactions from leading figures in the cryptocurrency world. Bloomberg ETF analyst James Seyffart criticized Kelleher, highlighting the significant efforts asset management companies have made in their applications for a spot Bitcoin ETF.
Fox Business journalist Eleanor Terrett pointed out Kelleher’s recent negative comments on cryptocurrencies. Terrett reminded readers of Kelleher’s past statement, “This is worse than a fantasy, it’s a fraud on the public,” which he made during an interview with the Institute for New Economic Thinking in May 2023.
11 Companies Submit 19b-4 Amendment Forms to the SEC
Meanwhile, 11 asset management companies, including BlackRock, submitted their 19b-4 amendment forms to the SEC before the close of business on January 5. These forms are one of the final stages in the SEC’s approval process, but the completion of S-1 documents is necessary for ETFs that allow direct investment in cryptocurrencies on U.S. exchanges to be listed. The asset management company is expected to submit its S-1 documents to the SEC next Monday.
It is known that the SEC has until January 10, 2023, to approve or reject America’s first spot Bitcoin ETF.
