Better Markets Exec Jumps Against Bitcoin spot ETF applications, asked SEC to reject

Dennis M. Kelleher asked the SEC body not to approve Bitcoin spot ETF applications.

As we know, the United States Securities and Exchange Commission (SEC) is currently busy in Bitcoin spot ETF applications and most likely they will approve them in the next few days, as per reports. 

On 6 Jan 2024,  Dennis M. Kelleher, Co-Founder and CEO of Better Markets, a non-profit organisation that focuses on advancing public financial interest, raised concerns against bitcoin spot ETF applications.

Better Markets CEO penned a letter to the SEC body as a response against the proposed rule changes by national securities exchanges which are eagerly waiting to list Bitcoin spot ETF products. 

Dennis called this decision a historically bad idea because it will potentially harm huge numbers of investors at a very big scale.

According to Dennis, if these bitcoin spot ETF applications get approved then the American financial market would expose a huge risk to millions of American investors. In short, the Crypto market poses huge risks e.g. fraud & market manipulation.

Today we filed a supplemental comment letter detailing why @SECGov should reject the pending request for a #Bitcoin ETP. It had the incorrect year 2023, which has now been changed to 2024 & you can read it here: https://t.co/5eLMT6Sfen pic.twitter.com/7cFzR8XQXV

— Better Markets (@BetterMarkets) January 6, 2024

Now it will be interesting to see how the SEC body will respond to this suggestion and whether the SEC agency will consider this opposition as a factor to pause the development work on all the Bitcoin spot ETF applications or will ignore it blindly.

It is worth it to note that the raised concerns by Better Markets are really important but here we need to understand that the SEC body already examined such risks & this is the reason why the SEC body took nearly 2 years to consider the approval for Bitcoin spot ETF applications.

Between 2022 and 2023, the SEC body rejected all the Bitcoin spot ETF applications for multiple reasons and the most common reason behind the rejection of these applications was “market manipulation” risk.

With the help of multiple developments in the Bitcoin spot ETF applications, the applicants make sure that they will successfully keep manipulation-like things away. 

Read also: Technically the SEC body unofficially approved Bitcoin spot ETF applications