Dennis M. Kelleher, Chief Executive Officer of Better Markets, recently articulated strong reservations regarding the United States Securities and Exchange Commission's (SEC) possible sanctioning of a spot Bitcoin exchange-traded fund (ETF). In a communication to the SEC, Kelleher underscored his apprehensions, arguing that this action might undermine the regulatory agency's core principles.
Better Markets, a Washington, D.C.-based nonprofit where Kelleher serves as President and CEO, dedicates itself to upholding public interest in financial markets. The organization, noted for its advocacy of a stable, fair, and transparent financial system, became prominent following its significant contributions to financial reforms post the 2008 financial crisis. Kelleher, with a varied background encompassing law, policy, and advocacy, has held pivotal roles on Capitol Hill, in corporate law, and as a litigation attorney.
In a January 5 letter to SEC secretary Vanessa Countryman, Kelleher voiced his unease concerning the investor risks tied to a spot Bitcoin ETF. Describing the approval of such a product as potentially catastrophic, he emphasized the likelihood of "massive investor harm."
Kelleher's primary worry centers on the risk of fraud in the cryptocurrency industry. He said, "The approval of these spot Bitcoin ETPs would not only expose investors to a market thoroughly contaminated with fraud and manipulation." This statement aligns with a recent Cointelegraph report showing over 324,000 crypto users fell prey to phishing scams in 2023, losing around $295 million to wallet drainers.
He further indicated that sanctioning a Bitcoin ETF might inadvertently signal a U.S. government endorsement of crypto products, potentially deceiving investors about their safety and legitimacy.
While Kelleher remains skeptical, figures within the crypto sector have challenged his views. Bloomberg's ETF analyst James Seyffart, for example, critiqued Kelleher’s letter on social media platform X, highlighting efforts by asset management companies to enhance their Bitcoin ETF proposals.
Anonymous crypto analyst DonAlt shared insights about the SEC's pending decision on the ARK 21Shares Bitcoin ETF, due by January 10. He forecasted a potential 37% drop in Bitcoin’s value if the SEC rejects the ETF. According to him, Bitcoin’s current market structure, ranging between $33,000 and $38,000, could be destabilized, potentially falling to the $27,000-$28,000 range.
At the time of reporting, Bitcoin was trading around $43,777, marking a slight 0.33% increase over the last 24 hours. DonAlt suggested that the forthcoming ETF decision is critical in determining Bitcoin's future price trajectory.
Interestingly, DonAlt hypothesized that an approval might initially boost Bitcoin's price, potentially followed by a sell-off, driving the value down to about $38,000 before a recovery.
Binance has announced a new campaign called "Crypto is better with Binance". The campaign will feature ten stories from Binance users around the world who have used crypto to improve their lives.
JoyUnderstanding the co-movement of volatility across different cryptocurrencies at high frequencies is crucial for traders, investors, and researchers.
BitcoinworldAfter Sam Bankman-Fried (SBF) was arrested by Bahamian authorities yesterday, Ray took the job of testifying before the U.S. Congress.
BitcoinistHer remarks largely echo concerns voiced by banking regulators at two days of congressional hearings.
OthersThe initial offer appeared to have been rejected.
CoindeskDo Kwon should better call Seoul fast and hire the best lawyer in the city to defend him when things ...
BitcoinistInvesting in crypto assets has become more popular among Australian baby boomers, according to Australia's largest exchange.
Cointelegraph“We launched Cove Markets three years ago to help crypto investors get the most out of their trading experience,” said Cove Markets CEO and co-founder Scott Knudsen.
CointelegraphRipple CEO Brad Garlinghouse told attendees of the Paris Blockchain Week that the ongoing case with the SEC is going exceedingly well.
CointelegraphCelsius Network CEO Alex Mashinsky shared his insights on the Bitcoin and Ether markets at Paris Blockchain Week Summit.
Cointelegraph
