Better Markets CEO Dennis M. Kelleher has expressed concerns about the potential approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). In a letter to the SEC, Kelleher called on the regulatory body to reconsider its approach to a spot Bitcoin ETF, citing potential risks and fraud.
Kelleher argued that approving a spot Bitcoin ETF would contradict the SEC’s core principles and expose investors to serious risks. He stated, “It would be a grave if not historic mistake almost certainly leading to massive investor harm if the SEC approves the pending rule change.”
However, Bloomberg ETF analyst James Seyffart criticized Kelleher’s efforts to stop a Bitcoin ETF, calling it a “criminal move.” Seyffart argued that it would be unfair to issuers and SEC staff who have put in significant time and effort into the process.
The SEC is expected to make a decision on the Bitcoin ETF by January 10, with 11 spot Bitcoin ETF applicants submitting 19b-4 amendment forms. A recent survey by Bitwise revealed that only 39% of financial advisors were confident of the SEC approving the spot Bitcoin ETF this year.
Economist Peter Schiff warned that those waiting for a Bitcoin ETF approval rally might be disappointed. He suggested a “buy the rumor, sell the rumor of the news” strategy, indicating that the market might not react as expected to the approval news.
The SEC has already held meetings with various firms, including BlackRock Inc. and Grayscale Investments, to discuss proposed Bitcoin ETFs. The deadline for final amendments was set for December 29, 2023.
At the time of writing, Bitcoin was trading at $43,702.1338, recording a 0.06% increase in the last 24 hours. It remains to be seen whether the SEC will approve a spot Bitcoin ETF and how the market will react to the decision.
Disclaimer: This article was produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
