Better Markets CEO says approval of Bitcoin ETF would be ‘historic mistake’

Dennis M. Kelleher, the CEO of the Bat Markets charity, urged the United States Securities and Exchange Commission (SEC) not to approve the Bitcoin exchange-traded fund (ETF). They argued that it was against the core principles of the regulatory body.

In a Jan. 5 letter to SEC Secretary Vanessa Countyman, Kelleher emphasized that if the SEC approves the Bitcoin ETF, it could lead to investors facing higher risks.

“We are filing this additional opinion letter (better markets are rare) because it is serious if the SEC approves the pending rule change, a historic mistake that will result in significant investor harm.

Kelleher argued that the proposed product would subject investors to the risk of potential fraud, a concern that has been associated with the crypto industry from the beginning.

“The approval of these places' Bitcoin ETPs not only exposes investors to a market contaminated by fraud and fraud,” he said.

This comes as Cointelegraph reports that more than 324,000 crypto users fell victim to phishing scams in 2023, with $295 million worth of digital assets lost through wallet drains.

Meanwhile, Kelleher also explained that the crypto industry can claim that their products are now approved by the United States government.

Related: ARK's Cathi Wood Sees Short-Term Outcome of Spot Bitcoin ETF as ‘Selling on News'

However, prominent crypto analysts rejected the letter, Bloomberg ETF analyst James Seifert criticized on social media.

In a post on X (formerly Twitter), Seyfert reiterated the huge effort by property management companies to promote their apps.

Considering the time and energy from all of these issuers and the SEC staff over the past few months, it's absolutely criminal action to make this happen https://t.co/QZR4pqcyga

— James Seyff (@JSeyff) January 5, 2024

Meanwhile, in another post on X, Fox Business reporter Eleanor Terrett Kelleher reiterated his recent negative comments about crypto.

“It's worse than a nightmare, it's a fraud on the public,” she recalls.

Kelleher made this comment in a May 2023 interview with the Institute for New Economic Thought.

In recent news, 11 of the space's Bitcoin ETF applicants filed 19b-4 amendment forms before the close of business on January 5.

These forms are one of the final steps in the SEC approval process, but S-1 filings must be completed before US exchanges can begin listing shares of investment securities with direct exposure to crypto.

The SEC has until January 10 to approve or disapprove the Bitcoin ETF position.

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