Dennis M. Kelleher, CEO of the nonprofit organization Better Markets, has urged the United States Securities and Exchange Commission (SEC) to not approve a spot Bitcoin exchange-traded fund (ETF).
According to a letter addressed to SEC Secretary Vanessa Countryman on Friday, January 5, 2024, Kelleher argued that approving a spot Bitcoin ETF goes against the core principles of the regulatory body and could lead to significant investor risks.
Kelleher stated that the proposed product would subject investors to potential fraud, a concern associated with the crypto industry.
He explained that approving spot Bitcoin ETFs would not only expose investors to a market contaminated with fraud and manipulation but also enable the crypto industry to claim government approval of their products.
This letter from Dennis comes as over 324,000 crypto users reportedly fell victim to phishing scams in 2023, with around $295 million lost to wallet drainers according to Scam Sniffer.Â
However, some have dismissed the letter, with Bloomberg ETF analyst James Seyffart criticizing it on social media. Seyffart reiterated the substantial effort invested by asset management firms in advancing their ETF applications.
Also Read: Coinbase and SEC Dispute May Delay Bitcoin ETF Approval
